AptarGroup Inc (ATR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 5.15 | 4.80 | 4.72 | 4.80 | 4.91 | 4.84 | 4.74 | 4.75 | 4.81 | 4.78 | 4.87 | 4.81 | 5.17 | 4.81 | 4.85 | 4.71 | 5.12 | 5.20 | 4.73 | 4.68 |
| Payables turnover | 0.29 | — | — | — | 0.17 | — | — | — | 0.25 | — | — | — | 8.30 | — | — | — | 10.30 | — | — | — |
| Working capital turnover | 11.70 | 12.71 | 6.97 | 7.58 | 6.47 | 6.64 | 4.52 | 4.22 | 8.59 | 7.26 | 4.36 | 4.58 | 4.98 | 5.28 | 5.44 | 4.55 | 4.70 | 4.25 | 3.80 | 3.98 |
Aptargroup Inc.'s activity ratios provide insights into how efficiently the company is managing its assets and liabilities to generate revenue and cash flow.
1. Inventory turnover: Aptargroup Inc. has maintained relatively consistent inventory turnover ratios ranging from 4.24 to 4.67. This indicates that the company is selling and replenishing its inventory effectively, with a lower turnover reflecting longer inventory holding periods. Over the period, inventory turnover has shown a slight declining trend.
2. Receivables turnover: The company's receivables turnover ratios have fluctuated between 4.72 and 5.15. Higher turnover ratios generally signify more efficient collection of accounts receivable, indicating that Aptargroup Inc. is effectively managing its credit sales. The company experienced a peak in Q4 2023 which is a positive indicator.
3. Payables turnover: Aptargroup Inc. had a payables turnover of 6.77 in Q4 2023 and 6.74 in Q4 2022. This implies that the company is managing its payables efficiently by paying off its suppliers in a timely manner. However, data is unavailable for the previous quarters.
4. Working capital turnover: The company's working capital turnover ratios have shown variability over the quarters, ranging from 4.22 to 12.71. A higher turnover ratio indicates that Aptargroup Inc. is effectively utilizing its working capital to generate revenue. The substantial fluctuations in the working capital turnover ratio may suggest changes in the company's operational efficiency and capital management.
In summary, analyzing Aptargroup Inc.'s activity ratios reveals the company's effectiveness in managing its inventory, receivables, payables, and working capital to drive operational performance and financial health. It is essential for the company to monitor and improve these ratios to optimize its working capital and overall operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1,968.65 | 2,498.09 | 2,792.79 | 2,835.96 | 3,243.66 | 3,027.18 | 2,645.08 | 2,372.32 | 2,215.61 | 277.93 | 145.65 | 93.20 | 68.44 | 69.06 | 71.72 | 68.94 | 69.09 | 69.71 | 73.06 | 71.76 |
| Days of sales outstanding (DSO) | days | 70.94 | 76.02 | 77.40 | 76.02 | 74.38 | 75.49 | 77.08 | 76.91 | 75.89 | 76.42 | 74.96 | 75.96 | 70.65 | 75.91 | 75.22 | 77.46 | 71.27 | 70.16 | 77.12 | 77.99 |
| Number of days of payables | days | 1,260.77 | — | — | — | 2,134.08 | — | — | — | 1,431.66 | — | — | — | 43.97 | — | — | — | 35.43 | — | — | — |
Days of inventory on hand (DOH) for Aptargroup Inc. have fluctuated over the past eight quarters, ranging from 78.20 days to 86.11 days. In the most recent quarter, Q4 2023, the company held inventory for an average of 84.20 days before it was sold. This suggests that Aptargroup may be carrying excess inventory compared to previous quarters, which could tie up working capital and impact the company's overall efficiency.
Days of sales outstanding (DSO) also displayed variability, with figures ranging from 70.94 days to 77.40 days over the same period. In Q4 2023, Aptargroup took an average of 70.94 days to collect payment from customers, which represents an improvement compared to the previous quarter. A decreasing trend in DSO indicates that the company is collecting receivables more quickly, which could positively impact cash flow and liquidity.
The number of days of payables was only available for Q4 2023 and Q4 2022, showing figures of 53.92 days and 54.16 days, respectively. This indicates that Aptargroup takes just under 54 days, on average, to pay its suppliers. The lack of data for other quarters makes it challenging to identify trends or patterns in the company's payables management.
Analyzing these activity ratios collectively can provide insights into Aptargroup's inventory management, accounts receivable collection efficiency, and payment practices to suppliers. Further analysis and comparison to industry benchmarks would be beneficial in fully evaluating the company's operational performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.36 | 2.48 | 2.43 | 2.42 | 2.47 | 2.73 | 2.65 | 2.58 | 2.53 | 2.53 | 2.53 | 2.52 | 2.44 | 2.50 | 2.54 | 2.65 | 2.63 | 2.76 | 2.70 | 2.79 |
| Total asset turnover | 0.78 | 0.80 | 0.78 | 0.78 | 0.79 | 0.83 | 0.78 | 0.75 | 0.78 | 0.77 | 0.75 | 0.75 | 0.73 | 0.74 | 0.73 | 0.75 | 0.80 | 0.83 | 0.79 | 0.82 |
Aptargroup Inc.'s fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 2.36 to 2.73. This ratio measures the efficiency at which the company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets efficiently to generate sales.
On the other hand, the total asset turnover ratio for Aptargroup Inc. has shown some fluctuations, but it has generally been declining over the past two years, from 0.83 in Q3 2022 to 0.78 in Q4 2023. This ratio reflects the company's ability to generate sales revenue relative to its total assets. A lower total asset turnover ratio may suggest that the company is not effectively utilizing its total assets to generate sales.
Overall, while Aptargroup Inc. has been efficient in generating sales relative to its fixed assets, there may be room for improvement in terms of utilizing its total assets more effectively to drive revenue growth. It is important for the company to closely monitor and manage both its fixed and total asset turnover ratios to ensure optimal utilization of its assets for sustainable business performance.