AptarGroup Inc (ATR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.24 | 1.22 | 1.47 | 1.42 | 1.56 | 1.56 | 1.90 | 1.91 | 1.38 | 1.48 | 1.91 | 1.86 | 1.75 | 1.69 | 1.62 | 1.70 | 1.89 | 2.04 | 2.11 | 2.13 |
| Quick ratio | 0.72 | 0.71 | 0.82 | 0.79 | 0.89 | 0.91 | 1.15 | 1.22 | 0.81 | 0.86 | 1.19 | 1.16 | 1.11 | 1.10 | 0.99 | 1.14 | 1.17 | 1.27 | 1.35 | 1.31 |
| Cash ratio | 0.18 | 0.12 | 0.12 | 0.12 | 0.15 | 0.14 | 0.29 | 0.41 | 0.13 | 0.13 | 0.37 | 0.34 | 0.38 | 0.35 | 0.30 | 0.46 | 0.35 | 0.42 | 0.45 | 0.35 |
Aptargroup Inc.'s liquidity ratios show fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has been fluctuating between 1.22 and 1.56. A ratio above 1 indicates that the company has more current assets than current liabilities, with Q2 2022 and Q1 2022 showing particularly strong liquidity.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also fluctuated but generally remained lower than the current ratio. The company's ability to quickly cover short-term obligations improved in Q4 2022, before declining in subsequent quarters.
The cash ratio, which assesses the company's ability to cover current liabilities with only cash and cash equivalents, indicates a declining trend from Q1 2022 to Q3 2023. The ratio fell from 0.57 in Q1 2022 to 0.24 in Q3 2023, suggesting a decreasing ability to cover short-term liabilities solely with cash on hand.
Overall, Aptargroup Inc.'s liquidity ratios show variability, with the company generally able to meet short-term obligations, though there are indications that its ability to do so has weakened in recent quarters.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Aptargroup Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 101.22 days from 156.80 days in the previous quarter. This indicates that the company was able to convert its investment in inventory back into cash more efficiently in Q4 2023.
Comparing Q4 2023 with the same quarter in the previous year, the cash conversion cycle was slightly lower in Q4 2023 (101.22 days vs. 102.54 days in Q4 2022). This suggests that Aptargroup Inc. improved its management of receivables and payables, leading to a shorter cash conversion cycle.
Although there were fluctuations in the cash conversion cycle over the quarters, it is essential to monitor trends over a more extended period to assess the company's overall efficiency in managing its working capital. A decreasing trend in the cash conversion cycle generally indicates improvements in the company's liquidity and operational efficiency.