Avery Dennison (Avery Dennison) Interest Coverage

: 9.05 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Avery Dennison's Operating Income for the three months ended in Dec. 2023 was $269 Mil. Avery Dennison's Interest Expense for the three months ended in Dec. 2023 was $-30 Mil. Avery Dennison's interest coverage for the quarter that ended in Dec. 2023 was 9.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Avery Dennison's Interest Coverage or its related term are showing as below:

AVY' s Interest Coverage Range Over the Past 10 Years
Min: 7.78 Med: 11.05 Max: 15.16
Current: 8.1

AVY's Interest Coverage is ranked better than
51.28% of 312 companies
in the Packaging & Containers industry
Industry Median: 7.215 vs AVY: 8.10

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Avery Dennison Interest Coverage Historical Data

The historical data trend for Avery Dennison's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Avery Dennison Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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10.87

12.33

15.16

12.76

8.10

Avery Dennison Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															8.35	7.88	7.33	8.17	9.05

Competitive Comparison

For the Packaging & Containers subindustry, Avery Dennison's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Avery Dennison Interest Coverage Distribution

For the Packaging & Containers industry and Consumer Cyclical sector, Avery Dennison's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Avery Dennison's Interest Coverage falls into.

Avery Dennison Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Avery Dennison's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Avery Dennison's Interest Expense was $-119 Mil. Its Operating Income was $964 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,622 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	963.8	/	-119
	=	8.10

Avery Dennison's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Avery Dennison's Interest Expense was $-30 Mil. Its Operating Income was $269 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,622 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	268.9	/	-29.7
	=	9.05

The higher the ratio, the stronger the company's Financial Strength is.

Avery Dennison (NYSE:AVY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Avery Dennison Interest Coverage Related Terms

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Avery Dennison (Avery Dennison) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Avery Dennison Corp (NYSE:AVY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AV3:Germany AVY:Argentina

Address

8080 Norton Parkway, Mentor, OH, USA, 44060

Website

https://www.averydennison.com

Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.

Executives

Ignacio J Walker	officer: VP and Chief Legal Officer	207 GOODE AVE, GLENDALE CA 91203
Divina Fe Santiago	officer: VP Controller	8080 NORTON PARKWAY, MENTOR OH 44060
Julia A Stewart	director	4551 WEST 107TH STREET STE 100, C/O APPLEBEES INTERNATIONAL INC, OVERLAND PARK KS 66207
Francisco Melo	officer: President, Solutions Group	8080 NORTON PARKWAY, MENTOR OH 44060
Hassan Rmaile	officer: President, Materials Group	1200 WILLOW LAKE BLVD, P.O. BOX 64683, ST. PAUL MN 55110
Andres Alberto Lopez	director	ONE MICHAEL OWENS WAY, PERRYSBURG OH 43551
Francesca Reverberi	director	C/O TRINSEO S.A., 1000 CHESTERBROOK BLVD., SUITE 300, BERWYN PA 19312
Anthony Anderson	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Martha N. Sullivan	director	529 PLEASANT STREET, MS B-7, ATTLEBORO MA 02703
William Raymond Wagner	director	C/O VOCUS, INC., 4296 FORBES BOULEVARD, LANHAM MD 20706
Bradley A Alford	director	150 N ORANGE GROVE BLVD, PASADENA CA 91103
Deena Baker-nel	officer: VP & Chief HR Officer	207 GOODE AVE, GLENDALE CA 91203
Gregory Lovins	officer: V.P. and Interim CFO	207 GOODE AVENUE, GLENDALE CA 91203
Ken C Hicks	director	150 N. ORANGE GROVE BLVD, PASADENA CA 91103
Nicholas Colisto	officer: VP & Chief Information Officer	C/O AVERY DENNISON CORPORATION, 207 GOODE AVE, GLENDALE CA 91203