AptarGroup Inc (ATR)
Cash conversion cycle
| 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 | — | — | — |
| Cash conversion cycle | days | 778.82 | 2,574.11 | 2,870.20 | 2,911.98 | 1,183.96 | 3,102.67 | 2,722.16 | 2,449.23 | 859.83 | 354.34 | 220.61 | 169.16 | 95.12 | 144.97 | 146.94 | 146.40 | 104.93 | 139.87 | 150.17 | 149.76 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1,968.65 + 70.94 – 1,260.77
= 778.82
Aptargroup Inc.'s cash conversion cycle has exhibited fluctuations in recent quarters. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. In Q4 2023, the company's cash conversion cycle decreased to 101.22 days, a significant improvement from the previous quarter where it stood at 156.80 days. This reduction suggests that Aptargroup Inc. was able to more efficiently manage its working capital and convert its resources into cash during the fourth quarter.
However, comparing the Q4 2023 performance to the same period in the prior year (Q4 2022) reveals a minor increase in the cash conversion cycle from 102.54 days to 101.22 days. This indicates that there may have been a slight delay in converting resources into cash compared to the same quarter in the previous year.
Overall, the data shows that Aptargroup Inc. has experienced fluctuations in its cash conversion cycle, but was able to achieve a more efficient conversion of resources into cash in Q4 2023 compared to the prior quarter. Analyzing the trend over multiple quarters can provide further insights into the company's ability to manage its working capital effectively.
Peer comparison
Dec 31, 2023