AptarGroup Inc (ATR)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 95,123 | 71,722 | 67,482 | 65,985 | 54,779 | 55,796 | 64,939 | 70,715 | 72,727 | 574,361 | 1,076,154 | 1,543,745 | 2,023,334 | 1,982,769 | 1,943,660 | 1,968,771 | 1,985,342 | 2,007,850 | 1,995,025 | 1,985,693 |
| Inventory | US$ in thousands | 513,053 | 490,872 | 516,338 | 512,687 | 486,806 | 462,752 | 470,600 | 459,613 | 441,464 | 437,343 | 429,440 | 394,179 | 379,379 | 375,177 | 381,939 | 371,859 | 375,795 | 383,491 | 399,319 | 390,403 |
| Inventory turnover | 0.19 | 0.15 | 0.13 | 0.13 | 0.11 | 0.12 | 0.14 | 0.15 | 0.16 | 1.31 | 2.51 | 3.92 | 5.33 | 5.28 | 5.09 | 5.29 | 5.28 | 5.24 | 5.00 | 5.09 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $95,123K ÷ $513,053K
= 0.19
The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times a company sells and replaces its inventory within a specific period. In the case of Aptargroup Inc., the inventory turnover has fluctuated over the past eight quarters, ranging from 4.24 to 4.67.
A decreasing trend in inventory turnover ratio may suggest overstocking, slow-moving inventory, or poor sales, which could tie up capital in inventory and lead to potential obsolescence. On the other hand, a high and consistent inventory turnover ratio, such as seen in Q3 2022 (4.67), indicates that inventory is moving quickly, which can free up working capital and reduce storage costs.
In the most recent quarter, Q4 2023, the inventory turnover ratio was 4.33, showing a slight decline from the previous quarter. This could indicate that Aptargroup Inc. may have slightly slower inventory turnover during this period compared to Q3 2023. However, the ratio remains relatively stable and within a close range across the last eight quarters, suggesting that the company's inventory management is generally effective and consistent.
Overall, Aptargroup Inc. appears to maintain a healthy level of inventory turnover, allowing for efficient use of resources and better cash flow management. However, it may be beneficial for the company to monitor any fluctuations closely to ensure optimal inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023