AptarGroup Inc (ATR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 223,643 | 141,732 | 122,925 | 300,137 | 241,970 |
| Short-term investments | US$ in thousands | — | 0 | 740 | 243 | 0 |
| Receivables | US$ in thousands | 677,800 | 677,000 | 671,000 | 567,000 | 558,428 |
| Total current liabilities | US$ in thousands | 1,251,310 | 917,176 | 982,492 | 780,329 | 683,275 |
| Quick ratio | 0.72 | 0.89 | 0.81 | 1.11 | 1.17 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($223,643K
+ $—K
+ $677,800K)
÷ $1,251,310K
= 0.72
The quick ratio of Aptargroup Inc. has displayed a decreasing trend from 1.34 in 2019 to 0.83 in 2023. This indicates a potential deterioration in the company's short-term liquidity position. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations using its most liquid assets.
The ratio was highest in 2019 at 1.34, indicating a strong ability to cover its current liabilities with its quick assets. However, the subsequent decrease in the ratio each year raises concerns about the company's ability to swiftly convert its current assets into cash to meet its short-term obligations.
It is important for Aptargroup Inc. to closely monitor its quick ratio and take necessary measures to improve liquidity management, such as optimizing current asset levels or managing current liabilities more effectively, to ensure the company's financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023