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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Avery Dennison's annualized net income for the quarter that ended in Sep. 2024 was $727 Mil. Avery Dennison's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $2,341 Mil. Therefore, Avery Dennison's annualized ROE % for the quarter that ended in Sep. 2024 was 31.05%.
The historical rank and industry rank for Avery Dennison's ROE % or its related term are showing as below:
During the past 13 years, Avery Dennison's highest ROE % was 46.71%. The lowest was 19.30%. And the median was 31.25%.
The historical data trend for Avery Dennison's ROE % 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.
Avery Dennison Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROE % | Get a 7-Day Free Trial | 28.12 | 41.35 | 43.42 | 38.27 | 24.18 |
Avery Dennison Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
ROE % | Get a 7-Day Free Trial | 27.13 | 27.31 | 31.84 | 31.49 | 31.05 |
For the Packaging & Containers subindustry, Avery Dennison's ROE %, along with its competitors' market caps and ROE % 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.
For the Packaging & Containers industry and Consumer Cyclical sector, Avery Dennison's ROE % distribution charts can be found below:
* The bar in red indicates where Avery Dennison's ROE % falls into.
Avery Dennison's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as
ROE % | = | Net Income (A: Dec. 2023 ) | / | ( (Total Stockholders Equity (A: Dec. 2022 ) | + | Total Stockholders Equity (A: Dec. 2023 )) | / count ) |
= | 503 | / | ( (2032.2 | + | 2127.9) | / 2 ) | |
= | 503 | / | 2080.05 | ||||
= | 24.18 % |
Avery Dennison's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as
ROE % | = | Net Income (Q: Sep. 2024 ) | / | ( (Total Stockholders Equity (Q: Jun. 2024 ) | + | Total Stockholders Equity (Q: Sep. 2024 )) | / count ) |
= | 726.8 | / | ( (2287.1 | + | 2393.9) | / 2 ) | |
= | 726.8 | / | 2340.5 | ||||
= | 31.05 % |
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.
Avery Dennison (NYSE:AVY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
ROE % | (Q: Sep. 2024 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 726.8 | / | 2340.5 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (726.8 / 8733.6) | * | (8733.6 / 8375.05) | * | (8375.05 / 2340.5) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 8.32 % | * | 1.0428 | * | 3.5783 |
= | ROA % | * | Equity Multiplier | ||
= | 8.68 % | * | 3.5783 | ||
= | 31.05 % |
With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.
The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:
ROE % | (Q: Sep. 2024 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | 726.8 | / | 2340.5 | ||||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Operating Income) | * | (Operating Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (726.8 / 957.2) | * | (957.2 / 1118.8) | * | (1118.8 / 8733.6) | * | (8733.6 / 8375.05) | * | (8375.05 / 2340.5) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.7593 | * | 0.8556 | * | 12.81 % | * | 1.0428 | * | 3.5783 |
= | 31.05 % |
Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income. * In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Thank you for viewing the detailed overview of Avery Dennison's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nicholas Colisto | officer: VP & Chief Information Officer | C/O AVERY DENNISON CORPORATION, 207 GOODE AVE, GLENDALE CA 91203 |
Mitchell R Butier | officer: VP, Controller & CAO | 150 N. ORANGE GROVE BLVD., PASADENA CA 91103 |
Ignacio J Walker | officer: VP and Chief Legal Officer | 207 GOODE AVE, GLENDALE CA 91203 |
Deena Baker-nel | officer: VP & Chief HR Officer | 207 GOODE AVE, GLENDALE CA 91203 |
Francisco Melo | officer: President, Solutions Group | 8080 NORTON PARKWAY, MENTOR OH 44060 |
Gregory Lovins | officer: V.P. and Interim CFO | 207 GOODE AVENUE, GLENDALE CA 91203 |
Julia A Stewart | director | 4551 WEST 107TH STREET STE 100, C/O APPLEBEES INTERNATIONAL INC, OVERLAND PARK KS 66207 |
Divina Fe Santiago | officer: VP Controller | 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 |
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