AVY Quick Ratio Analysis

A quick ratio of 0.67x means Avery Dennison has $0.67 in liquid assets (cash, marketable securities, and receivables) for every $1 of current liabilities due within a year, so it may need to rely on inventory sales or new financing to cover near-term obligations.

This sits above the Industrials sector median of 0.61x, placing the company at the 59th percentile among sector peers, indicating slightly better short-term liquidity than most comparable firms. The trend data is limited: the year-over-year change is N/A, while the quarter-over-quarter change is -1.5%, moving from 0.68x to 0.67x. With the level already below 1.0x and a slight quarterly decline, the liquidity position is tight but not unusual for the sector, suggesting modest near-term cash-flow risk rather than a pressing solvency issue. This combination does not materially change the investment picture: the small decline and sub-1.0x ratio add a mild caution, but the sector-relative ranking tempers that concern. Overall, the metric supports the NEUTRAL verdict, as it neither signals a standout strength nor a clear liquidity red flag.A quick ratio of 0.67x means Avery Dennison has $0.67 of readily available assets—cash, marketable securities, and receivables—for every $1 of current liabilities due within a year, so the company may need to sell inventory or borrow to meet short-term obligations. This sits above the Industrials sector median of 0.61x, placing the company at the 59th percentile among sector peers, which indicates slightly better short-term liquidity than most comparable firms. The trend is largely unavailable: the year-over-year change is N/A, and the quarter-over-quarter change is -1.5%, with the metric easing from 0.68x to 0.67x. A sub-1.0x level combined with a modest quarterly decline implies some near-term cash-flow pressure, but the position above the sector median reduces the urgency of that risk. For investment risk, the metric points to moderate caution on liquidity, though not a structural problem. This supports the overall NEUTRAL verdict, as the quick ratio is neither a compelling strength nor a clear warning versus peers.

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