AptarGroup Inc (ATR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	95,123	54,958	72,727	2,023,330	1,985,340
Inventory	US$ in thousands	513,053	486,806	441,464	379,379	375,795
Inventory turnover		0.19	0.11	0.16	5.33	5.28

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $95,123K ÷ $513,053K
= 0.19

Aptargroup Inc.'s inventory turnover has shown a declining trend over the past five years, decreasing from 4.84 in 2019 to 4.33 in 2023. This indicates that the company is becoming less efficient in managing its inventory levels and turning over its inventory into sales.

A lower inventory turnover ratio suggests that Aptargroup Inc. may be carrying excess inventory, which could tie up valuable capital and lead to increased storage and holding costs. It may also indicate potential issues with demand forecasting, production inefficiencies, or challenges in managing supplier relationships.

It is important for Aptargroup Inc. to closely monitor its inventory turnover ratio and take proactive measures to address any underlying issues that may be affecting its inventory management efficiency. Improving inventory turnover can enhance cash flow, reduce carrying costs, and ultimately improve the company's profitability and overall financial performance.