AptarGroup Inc (ATR)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 223,844 223,643 141,732 122,925 300,137
Short-term investments US$ in thousands 2,337 0 0 740 243
Total current liabilities US$ in thousands 1,068,280 1,251,310 917,176 982,492 780,329
Cash ratio 0.21 0.18 0.15 0.13 0.38

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($223,844K + $2,337K) ÷ $1,068,280K
= 0.21

The cash ratio of AptarGroup Inc, which measures the company's ability to cover its short-term obligations with its readily available cash and cash equivalents, has shown fluctuating trends over the years.

As of December 31, 2020, the cash ratio stood at 0.38, indicating that the company had $0.38 in cash and cash equivalents for every $1 of its current liabilities. This was a relatively healthy level, suggesting a strong ability to meet short-term financial obligations.

However, by December 31, 2021, the cash ratio had decreased significantly to 0.13, signaling a decline in the company's liquidity position. With only $0.13 in cash for every $1 of current liabilities, AptarGroup Inc may have faced challenges in meeting its short-term financial commitments.

In the subsequent years, the cash ratio showed some improvement, reaching 0.15 by December 31, 2022, 0.18 by December 31, 2023, and 0.21 by December 31, 2024. While the upward trend indicates a strengthening liquidity position over time, the ratios still remain relatively low compared to the initial level in 2020.

Overall, AptarGroup Inc's cash ratio fluctuated over the period, with a significant decline in 2021 followed by a gradual improvement in the subsequent years. It is essential for the company to continue monitoring its liquidity position to ensure it can effectively manage its short-term financial obligations.