AptarGroup Inc (ATR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,487,450	3,322,250	3,227,220	2,929,340	2,859,730
Property, plant and equipment	US$ in thousands	1,478,060	1,343,660	1,275,880	1,198,750	1,087,660
Fixed asset turnover		2.36	2.47	2.53	2.44	2.63

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,487,450K ÷ $1,478,060K
= 2.36

Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more sales from its fixed assets.

Looking at the trend of Aptargroup Inc.'s fixed asset turnover ratio over the past five years, there is a moderate fluctuation. The ratio decreased from 2.63 in 2019 to 2.36 in 2023, with some variability in between. This suggests that the company's ability to generate sales from its fixed assets has decreased slightly over the period.

While the absolute values of the fixed asset turnover ratio for Aptargroup Inc. are relatively high, indicating a decent level of efficiency in utilizing fixed assets to generate revenue, the decreasing trend raises some concerns. Management may need to assess the asset utilization efficiency and consider strategies to improve it in order to enhance overall profitability and competitiveness in the industry. It is essential for the company to closely monitor and analyze this ratio to ensure optimal utilization of its fixed assets in the future.