AptarGroup Inc (ATR)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 64,316 | 87,242 | 88,399 | 87,943 | 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 |
| Inventory | US$ in thousands | 461,807 | 488,540 | 484,608 | 496,840 | 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 |
| Inventory turnover | 0.14 | 0.18 | 0.18 | 0.18 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $64,316K ÷ $461,807K
= 0.14
AptarGroup Inc's inventory turnover reveals the efficiency with which the company manages its inventory levels. The inventory turnover ratio has been declining steadily over the reported periods, starting at 5.29 on March 31, 2020, and dropping to 0.14 by June 30, 2022. This indicates a significant decrease in the rate at which AptarGroup is selling and replacing its inventory.
Such a sharp decline in inventory turnover can signal potential issues, such as overstocking, obsolete inventory, or a decrease in customer demand. The company's inventory management may be inefficient, leading to higher holding costs and lower liquidity.
It is crucial for AptarGroup to closely monitor its inventory turnover ratio and implement strategies to improve it, such as optimizing inventory levels, increasing sales, or streamlining operations. A low inventory turnover ratio can impact profitability and cash flow, highlighting the importance of effective inventory management for the company's financial health.
Peer comparison
Dec 31, 2024
Dec 31, 2024