AptarGroup Inc (ATR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 223,643 | 141,732 | 122,925 | 300,137 | 241,970 |
| Short-term investments | US$ in thousands | — | 0 | 740 | 243 | 0 |
| Total current liabilities | US$ in thousands | 1,251,310 | 917,176 | 982,492 | 780,329 | 683,275 |
| Cash ratio | 0.18 | 0.15 | 0.13 | 0.38 | 0.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($223,643K
+ $—K)
÷ $1,251,310K
= 0.18
Aptargroup Inc.'s cash ratio has shown some fluctuations over the past five years. The cash ratio calculates the company's ability to cover its short-term obligations with its readily available cash and cash equivalents.
The cash ratio was 0.29 as of December 31, 2023, which signifies that for every dollar of current liabilities, Aptargroup Inc. had $0.29 of cash and cash equivalents on hand. This ratio remained consistent with the prior year, indicating a stable liquidity position.
In comparison to the previous three years, where the cash ratio ranged from 0.25 to 0.54, Aptargroup Inc. exhibited varying levels of liquidity. The higher cash ratios in 2020 (0.54) and 2019 (0.52) suggest that the company had a stronger ability to cover its short-term obligations with cash during those years.
Overall, Aptargroup Inc. should regularly monitor its cash ratio to ensure it maintains an optimal level of liquidity to meet its short-term obligations. Any significant deviations from historical trends should prompt a more in-depth analysis of the company's cash management and liquidity position.
Peer comparison
Dec 31, 2023