AptarGroup Inc (ATR)

Liquidity ratios

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
Current ratio 1.38 1.62 1.36 1.30 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
Quick ratio 0.83 1.00 0.82 0.77 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
Cash ratio 0.21 0.32 0.19 0.17 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

AptarGroup Inc's liquidity ratios indicate its ability to meet short-term obligations and manage cash efficiently. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has shown fluctuations over the past few years, ranging from a low of 1.22 to a high of 1.91. A ratio above 1 indicates the company has more current assets than current liabilities, reflecting a healthy liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been volatile, fluctuating between 0.71 and 1.22. This ratio provides insight into the company's ability to meet short-term obligations without relying on selling inventory, with a ratio above 1 considered favorable.

Lastly, the cash ratio, which assesses the company's ability to cover current liabilities with cash and cash equivalents, has varied from 0.12 to 0.46. A higher cash ratio suggests that the company has a greater capacity to settle its short-term obligations solely with cash reserves.

Overall, AptarGroup Inc's liquidity ratios demonstrate adequate short-term liquidity and the ability to meet its current obligations. However, fluctuations in these ratios highlight the importance of closely monitoring the company's liquidity position to ensure financial stability and operational continuity.

Additional liquidity measure

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
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

The cash conversion cycle of AptarGroup Inc has shown significant fluctuations over the past few years, ranging from as low as 95.12 days to as high as 3,102.67 days. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The trend in the cash conversion cycle for AptarGroup Inc indicates periods of inefficiencies in managing its working capital, particularly notable in the significant spikes in the cycle duration observed in the latter half of 2021 and through 2022. During these times, the company took substantially longer to convert its resources into cash, potentially indicating challenges in managing inventory levels, accounts receivable collection, and accounts payable timing.

On the other hand, there are instances where the cash conversion cycle showed improvements, such as the lows observed in December 2020 and December 2023. These improvements may suggest more streamlined operations and better management of working capital, leading to quicker conversion of investments into cash inflows.

Overall, the fluctuating nature of AptarGroup Inc's cash conversion cycle indicates varying efficiency levels in managing its working capital. It is essential for the company to focus on optimizing its inventory levels, accelerating accounts receivable collections, and efficiently managing accounts payable to enhance overall liquidity and cash flow management.