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.