AptarGroup Inc (ATR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.19 | 0.11 | 0.16 | 5.33 | 5.28 | |
| DOH | days | 1,968.65 | 3,233.09 | 2,215.61 | 68.44 | 69.09 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.19
= 1,968.65
Aptargroup Inc.'s Days of Inventory on Hand (DOH) has exhibited a relatively increasing trend over the past five years. In particular, the DOH has increased from 75.43 days as of December 31, 2019, to 84.20 days as of December 31, 2023. This indicates that the company is holding its inventory for a longer period before selling it.
The upward trend in the DOH suggests that Aptargroup Inc. may be facing challenges in managing its inventory efficiently. Having a higher number of days of inventory on hand can tie up capital and increase associated holding costs.
It is recommended for Aptargroup Inc. to assess its inventory management processes and seek opportunities to optimize inventory levels to improve operational efficiency and maximize working capital utilization. This may involve better demand forecasting, improving supply chain coordination, and implementing inventory control measures to reduce excess inventory and carrying costs.
Peer comparison
Dec 31, 2023