AptarGroup Inc (ATR)

The current ratio of AptarGroup Inc has shown some fluctuation over the years, starting at 1.75 in 2020 and declining to 1.24 by 2023 before rebounding slightly to 1.38 in 2024. This ratio indicates that the company may have had more current assets relative to its current liabilities in the earlier years compared to the later years, which could imply a decrease in short-term liquidity.

Similarly, AptarGroup's quick ratio has followed a similar trend, starting at 1.11 in 2020 and decreasing to 0.72 by 2023 before slightly improving to 0.83 in 2024. The declining trend in the quick ratio suggests that the company's ability to cover its immediate short-term obligations with its most liquid assets like cash and equivalents has weakened over the years.

Moreover, looking at the cash ratio, which measures the extent to which a company can cover its short-term liabilities with its cash and cash equivalents alone, AptarGroup Inc's cash ratio has also shown a downward trend, from 0.38 in 2020 to 0.21 in 2024. This indicates a decrease in the company's ability to meet its short-term obligations solely with its readily available cash resources.

Overall, the liquidity ratios of AptarGroup Inc have displayed a declining trend over the years, indicating a potential deterioration in the company's short-term financial health and ability to meet its immediate obligations. Further analysis and monitoring of these ratios may be necessary to assess the company's liquidity position accurately and make informed decisions regarding its financial stability.

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Additional liquidity measure

The cash conversion cycle of AptarGroup Inc has shown significant fluctuations over the years, ranging from as low as 95.12 days to as high as 1,180.34 days. In 2020, the company's cash conversion cycle was relatively efficient at 95.12 days, indicating a quick turnover of cash from the beginning of the production process to the final collection of receivables.

However, there was a substantial deterioration in the cash conversion cycle in 2021, reaching 859.83 days. This sharp increase suggests potential issues in managing inventory, collecting receivables, or delaying payables payments. The company's cash conversion cycle further increased in 2022 to 1,180.34 days, indicating a prolonged period for converting investments in inventory and receivables back into cash.

In 2023, there was a slight improvement as the cash conversion cycle decreased to 778.82 days, but it remained significantly high compared to previous years. By 2024, the cycle increased again to 1,008.20 days, implying that AptarGroup Inc may be facing challenges in efficiently managing its working capital and operating cash flows.

Overall, the fluctuating trend in the cash conversion cycle for AptarGroup Inc suggests a need for the company to focus on optimizing its inventory management, credit policies, and payment terms to enhance its liquidity and cash flow efficiency.