AptarGroup Inc (ATR)

Payables 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
Payables	US$ in thousands	328,571	320,281	285,262	243,742	192,739
Payables turnover		0.29	0.17	0.25	8.30	10.30

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $95,123K ÷ $328,571K
= 0.29

The payables turnover ratio for Aptargroup Inc. has shown a decreasing trend over the past five years. In 2019, the company had a payables turnover of 9.43, which decreased to 7.56 in 2020, further declining to 7.26 in 2021, and then to 6.74 in 2022. However, there was a slight increase in the payables turnover ratio to 6.77 in 2023.

A decreasing trend in payables turnover may indicate that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or result in missed early payment discounts. It is essential for the company to manage its payables effectively to maintain positive relationships with suppliers and optimize cash flow. Further investigation into the company's payables management practices and supplier relationships may be warranted to address this trend.