AptarGroup Inc (ATR)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	2,620.80	1,968.65	3,233.09	2,215.61	68.44
Days of sales outstanding (DSO)	days	67.04	70.94	74.38	75.89	70.65
Number of days of payables	days	1,679.64	1,260.77	2,127.13	1,431.66	43.97
Cash conversion cycle	days	1,008.20	778.82	1,180.34	859.83	95.12

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2,620.80 + 67.04 – 1,679.64
= 1,008.20

The cash conversion cycle of AptarGroup Inc has shown significant fluctuations over the years. As of December 31, 2020, the cash conversion cycle stood at 95.12 days, indicating that the company was able to efficiently convert its investments in inventory and accounts receivable into cash.

However, by December 31, 2021, the cash conversion cycle had increased substantially to 859.83 days, suggesting that the company was taking longer to convert its investments into cash, potentially indicating issues with inventory management or accounts receivable collection.

The trend continued to worsen by December 31, 2022, with the cash conversion cycle reaching 1,180.34 days, reflecting a significant inefficiency in the company's cash conversion processes.

By December 31, 2023, there was a slight improvement, with the cash conversion cycle decreasing to 778.82 days, though still significantly higher compared to previous years.

As of December 31, 2024, the cash conversion cycle was at 1,008.20 days, showing that AptarGroup Inc continued to face challenges in efficiently converting its investments into cash.

Overall, the trend in AptarGroup Inc's cash conversion cycle indicates fluctuations and inefficiencies in managing its working capital effectively, which could impact the company's liquidity and overall financial performance. Further analysis and improvements in inventory and accounts receivable management may be necessary to enhance cash conversion efficiency.