AptarGroup Inc (ATR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.21 | 0.22 | 0.28 | 0.31 |
| Debt-to-capital ratio | 0.21 | 0.30 | 0.31 | 0.37 | 0.41 |
| Debt-to-equity ratio | 0.26 | 0.42 | 0.46 | 0.59 | 0.70 |
| Financial leverage ratio | 1.93 | 2.05 | 2.10 | 2.16 | 2.27 |
Aptargroup Inc.'s solvency ratios have shown a favorable trend over the past five years, indicating a strengthening financial position. The debt-to-assets ratio has decreased from 0.34 in 2019 to 0.26 in 2023, suggesting a lower proportion of assets financed by debt. Similarly, the debt-to-capital ratio has reduced from 0.43 in 2019 to 0.33 in 2023, indicating a decreasing reliance on debt for capital funding.
The debt-to-equity ratio has also improved, declining from 0.76 in 2019 to 0.49 in 2023. This signifies a shift towards a healthier balance between debt and equity financing within the company's capital structure. Furthermore, the financial leverage ratio has decreased from 2.27 in 2019 to 1.93 in 2023, indicating a reduction in financial risk and leverage.
Overall, Aptargroup Inc. has demonstrated a positive trend in its solvency ratios, reflecting a more stable and secure financial position with a lower dependence on debt for financing its operations. This improvement may enhance the company's ability to weather economic downturns and capitalize on growth opportunities in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 10.28 | 9.19 | 11.64 | 10.06 | 10.47 |
Aptargroup Inc.'s interest coverage ratio has shown a relatively steady and healthy performance over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.
In 2023, the interest coverage ratio stands at 12.52, indicating that the company's operating income is more than sufficient to cover its interest expenses. This demonstrates a strong ability to service its debt obligations.
Looking at the trend over the five-year period, we see that the interest coverage ratio has fluctuated within a reasonably narrow range. This stability indicates consistent financial health and management's prudent approach to debt management.
Overall, Aptargroup Inc.'s interest coverage ratio suggests that the company has had a solid ability to pay interest on its outstanding debt, providing a favorable impression to creditors and investors regarding its financial strength and stability.