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  "documentTitle": "Avery Dennison Corporation (AVY)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2020-11-10 00:00:00",
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      "text": "We will even give Avery the benefit of the doubt that its Adjusted Income is accurate",
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      "text": "AVY wants investors to see improved ROTC, but ignores pension, operating leases and other forms of debt",
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      "text": "AVY buys its own improvement in ROTC through stock repurchases. We normalize for this",
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      "text": "Return on Total Capital: 19.6%",
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      "text": "As we’ve previously shown, Avery aggressively portrays its financial results. It’s no surprise that it touts high Return on Total Capital at nearly 20%. Yet, by our adjustments, ROTC is much lower. Avery ignores that it is artificially boosting ROTC by repurchasing stock. In addition, Avery wants to show the benefits of reducing the pension debt, yet completely ignores it, along with operating leases, as a form of debt.",
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      "text": "Note: Return on Total Capital is calculated using average capital over the prior two years. Analysis ignores modest incremental interest income earned from cash in lieu of repurchases. Source: ROTC calculations Avery Investor Presentation (Slide 45) and Spruce Point Analysis",
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      "text": "Financial data table comparing Avery Promoted vs Spruce Point Adjusted metrics for 2017-2019.",
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      "text": "Suspect Return on Capital Performance",
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