AptarGroup Inc (ATR)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,582,890 | 3,487,450 | 3,322,250 | 3,227,220 | 2,929,340 |
| Total current assets | US$ in thousands | 1,478,380 | 1,549,280 | 1,430,290 | 1,358,210 | 1,369,000 |
| Total current liabilities | US$ in thousands | 1,068,280 | 1,251,310 | 917,176 | 982,492 | 780,329 |
| Working capital turnover | 8.74 | 11.70 | 6.47 | 8.59 | 4.98 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,582,890K ÷ ($1,478,380K – $1,068,280K)
= 8.74
The working capital turnover of AptarGroup Inc has shown a positive trend over the past five years, indicating an improvement in the efficiency of its working capital management. The ratio increased from 4.98 in December 2020 to a peak of 11.70 in December 2023, before slightly decreasing to 8.74 by December 2024.
A higher working capital turnover ratio suggests that the company is generating more revenue relative to its investment in working capital. This may indicate that AptarGroup has been able to more effectively utilize its current assets and liabilities to support its operations and sales activities.
The significant increase in the working capital turnover ratio from 2020 to 2023 reflects a notable improvement in AptarGroup's working capital management efficiency during this period. However, the slight decrease in the ratio from 2023 to 2024 may warrant further monitoring to ensure that the company maintains its efficiency in utilizing working capital going forward.
Overall, the upward trend in the working capital turnover ratio indicates that AptarGroup has been successful in optimizing its working capital to support its business operations and generate revenue efficiently over the past few years.
Peer comparison
Dec 31, 2024