Avery Dennison Corporation — Earnings Quality Grade F
AVY · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 62 days, change +1 days YoY
AR growth 2.6% vs revenue growth 1.1%
Revenue 1.1%, CFFO -6.1%. Cash follows revenue
Expense Quality
Inventory -0.2% vs COGS 1.4%. Normal
CapEx growth -16.4% vs revenue 1.1%. Normal
SG&A/Gross Profit = 50.5%. Normal
Gross margin 28.8%, change -0.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.28. Profits backed by cash
FCF $0.7B, FCF/NI = 0.99
Accruals ratio = -2.2%. Low accruals
Cash $0.2B covers only 5% of debt $3.7B
Balance Sheet Health
Goodwill+Intangibles $3.1B = 138% of equity. Over 50%
Debt/EBITDA = 2.7x. Healthy
Other assets 9.0% vs revenue 1.1%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 13% YoY. Normal
Manipulation Score
M-Score = -2.54 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10