AVYNEUTRAL

AVY Current Ratio Analysis

1.13x

Higher than 40% of Industrials sector peers

Updated 1119h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.13x means Avery Dennison has $1.13 in current assets for every $1 of current liabilities, a basic measure of its ability to cover short-term obligations.

Sector Performance

40th percentile

AVY

1.13x

Sector Median

1.18x

Sector Avg

3.23x

Prior Period

1.15x(Aug 2026)

↓ Declining

📊

Deep Analysis

The current ratio of 1.13x means Avery Dennison has $1.13 in current assets for every $1 of current liabilities, a basic measure of its ability to cover short-term obligations.

This sits below the Industrials sector median of 1.18x, placing the company at the 41st percentile among peers, so it is slightly less liquid than most. The year-over-year change is N/A, and the quarter-over-quarter change is -1.7%, reflecting a small decline from 1.15x to 1.13x in the most recent period. While the level is close to the sector norm, the downward movement indicates a mild reduction in short-term financial flexibility. This combination points to modest liquidity risk, but not a pressing concern, as the ratio remains above 1x. The metric supports the overall NEUTRAL verdict, as it neither signals a clear strength nor a major weakness.

Frequently Asked Questions

What does the Current Ratio tell investors about AVY?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does AVY's Current Ratio compare to its sector?

AVY's Current Ratio of 1.13x compares to a Industrials sector median of 1.18x, placing it in the 40th percentile.

Who are AVY's closest peers by Current Ratio?

The closest Industrials peers by Current Ratio include: BA (1.18x), AME (1.14x), MMM (1.24x), PWR (1.10x), ADP (1.04x).

📚

Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.