AptarGroup Inc (ATR)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,487,450	3,322,250	3,227,220	2,929,340	2,859,730
Total current assets	US$ in thousands	1,549,280	1,430,290	1,358,210	1,369,000	1,291,240
Total current liabilities	US$ in thousands	1,251,310	917,176	982,492	780,329	683,275
Working capital turnover		11.70	6.47	8.59	4.98	4.70

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,487,450K ÷ ($1,549,280K – $1,251,310K)
= 11.70

Aptargroup Inc.'s working capital turnover has shown variability over the past five years. The ratio measures how efficiently the company is using its working capital to generate sales revenue.

The working capital turnover ratio has been trending upwards from 4.70 in 2019 to 11.70 in 2023. This indicates that the company has been able to generate more revenue relative to its working capital investment. A higher turnover ratio typically suggests strong operational efficiency and effective management of working capital.

It is important to note that a high working capital turnover ratio could also indicate a company's aggressive stance in managing its working capital, which may involve risks such as running low on liquidity. However, Aptargroup Inc.'s increasing ratio over the years suggests that the company has been able to improve its efficiency in utilizing its working capital for generating sales.

Overall, the upward trend in the working capital turnover ratio for Aptargroup Inc. reflects positively on the company's ability to efficiently generate revenue using its working capital resources.