AptarGroup Inc (ATR)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	2,620.80	2,043.94	2,000.95	2,062.09	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
Days of sales outstanding (DSO)	days	67.04	71.40	75.71	74.59	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
Number of days of payables	days	1,679.64	—	—	—	1,260.77	—	—	—	2,134.08	—	—	—	1,431.66	—	—	—	43.97	—	—	—
Cash conversion cycle	days	1,008.20	2,115.34	2,076.65	2,136.68	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

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 (CCC) measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer CCC indicates that the company is taking more time to generate cash from its operational activities.

Analyzing the data provided for AptarGroup Inc:
- The CCC for AptarGroup fluctuated over the periods, ranging from a low of 95.12 days on December 31, 2020, to a high of 3,102.67 days on September 30, 2022.
- The CCC spiked significantly on March 31, 2022, and remained elevated over the following periods, indicating potential challenges in managing inventory and accounts receivable.
- The company showed improvements in its CCC by the end of 2024, with a decrease to 1,008.20 days on December 31, 2024.
- It is crucial for AptarGroup to carefully monitor and manage its CCC to ensure efficient working capital management and cash flow generation.

In conclusion, the analysis of AptarGroup Inc's CCC reveals fluctuations and challenges in managing its working capital efficiency over the periods, highlighting the importance of continuous monitoring and improvement in operational processes.