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.