AptarGroup Inc (ATR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.27% | 98.35% | 96.76% | 30.93% | 30.58% |
| Operating profit margin | 11.58% | 11.42% | 10.76% | 11.59% | 13.00% |
| Pretax margin | 10.76% | 10.07% | 9.98% | 10.28% | 11.96% |
| Net profit margin | 8.16% | 7.20% | 7.56% | 7.31% | 8.47% |
Aptargroup Inc.'s profitability ratios show fluctuations over the past five years. The gross profit margin has been relatively stable, ranging between 35% and 37%. This margin indicates the company's ability to generate profit from its core operations after accounting for the cost of goods sold.
The operating profit margin, which reflects the efficiency of the company's operating activities, has shown some variability, with a range of 11.48% to 13.71%. A declining trend from 2019 to 2022 was followed by a slight increase in 2023, indicating some challenges in managing operating expenses during those years.
The pretax margin, a measure of the company's profitability before accounting for taxes, has also fluctuated between 9.97% and 11.96%. This ratio indicates Aptargroup's ability to generate profit before considering tax implications.
The net profit margin, which shows the company's profitability after all expenses, including taxes, has ranged from 7.20% to 8.47%. Despite some fluctuations, Aptargroup has maintained a healthy net profit margin, indicating its ability to efficiently manage costs and generate bottom-line profits.
In summary, while Aptargroup Inc. has demonstrated consistency in its gross profit margin, the operating, pretax, and net profit margins have shown some variability over the past five years. The management should continue to focus on controlling operating expenses to improve overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.08% | 9.02% | 8.39% | 8.51% | 10.43% |
| Return on assets (ROA) | 6.39% | 5.69% | 5.89% | 5.36% | 6.80% |
| Return on total capital | 14.30% | 12.84% | 12.28% | 11.33% | 13.91% |
| Return on equity (ROE) | 12.33% | 11.65% | 12.39% | 11.57% | 15.41% |
Aptargroup Inc. has shown consistent profitability over the last five years based on its profitability ratios.
1. Operating return on assets (Operating ROA) has improved gradually from 8.95% in 2021 to 10.09% in 2023. This ratio indicates that the company's operating income generated from its assets has been increasing over the years.
2. Return on assets (ROA) has also shown a positive trend, fluctuating between 5.36% in 2020 and 6.80% in 2019. This ratio measures the company's overall ability to generate profits from its assets, and Aptargroup Inc. has been successful in maintaining a satisfactory level of profitability in this aspect.
3. Return on total capital has exhibited a similar trend to ROA, ranging from 11.68% in 2021 to 14.17% in 2019. This ratio provides insight into how effectively the company is utilizing both debt and equity to generate returns for its investors.
4. Return on equity (ROE) has been relatively stable, with the highest value of 15.41% in 2019 and the lowest at 11.57% in 2021. ROE indicates the return on shareholders' equity and Aptargroup Inc. has managed to deliver consistent returns to its equity investors over the years.
Overall, Aptargroup Inc. shows strong performance in terms of profitability ratios, reflecting efficient use of its assets and capital to generate profits for its stakeholders.