AptarGroup Inc (ATR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.13 | 0.21 | 0.22 | 0.28 |
| Debt-to-capital ratio | 0.20 | 0.21 | 0.30 | 0.31 | 0.37 |
| Debt-to-equity ratio | 0.24 | 0.26 | 0.42 | 0.46 | 0.59 |
| Financial leverage ratio | 1.79 | 1.93 | 2.05 | 2.10 | 2.16 |
AptarGroup Inc's solvency ratios have shown a positive trend over the years, indicating a strong financial position.
1. Debt-to-assets ratio has decreased steadily from 0.28 in 2020 to 0.14 in 2024, demonstrating the company's ability to reduce its debt relative to its total assets.
2. Debt-to-capital ratio has also decreased consistently from 0.37 in 2020 to 0.20 in 2024, showing a declining reliance on debt financing in relation to the company's total capital.
3. Debt-to-equity ratio has seen a significant decrease from 0.59 in 2020 to 0.24 in 2024, signaling a substantial reduction in debt relative to shareholders' equity.
4. The financial leverage ratio has decreased from 2.16 in 2020 to 1.79 in 2024, indicating a decreasing reliance on debt to finance the company's assets.
Overall, these decreasing trends in solvency ratios suggest that AptarGroup Inc has been effectively managing its debt levels and improving its financial stability over the years, which is a positive indication of the company's solvency and long-term financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.31 | 10.28 | 9.19 | 11.64 | 10.06 |
The interest coverage ratio for AptarGroup Inc has shown a generally positive trend over the past five years. In December 31, 2020, the interest coverage ratio stood at 10.06, indicating that the company was able to cover its interest expenses 10 times over with its operating income. This ratio improved to 11.64 by December 31, 2021, reflecting even stronger ability to meet interest obligations.
However, there was a slight decline in the interest coverage ratio to 9.19 by December 31, 2022, suggesting that the company's ability to cover interest expenses decreased slightly during that period. The ratio then rebounded to 10.28 by December 31, 2023, and further increased to 11.31 by December 31, 2024, indicating a recovery and improvement in the company's ability to service its debt obligations with its earnings.
Overall, the interest coverage ratios for AptarGroup Inc demonstrate a generally healthy financial position with sufficient operating income to cover interest expenses, although there was a slight dip in 2022 followed by a recovery in the subsequent years.