AptarGroup Inc (ATR)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	4,451,890	4,298,220	4,347,710	4,302,800	4,203,460	4,026,470	4,258,110	4,407,450	4,141,360	4,131,480	4,110,100	3,992,640	3,990,050	3,861,750	3,814,020	3,776,550	3,562,120	3,465,140	3,588,720	3,415,630
Total stockholders’ equity	US$ in thousands	2,306,820	2,199,740	2,174,390	2,112,820	2,053,940	1,874,680	1,934,110	1,983,270	1,969,410	1,957,900	1,986,280	1,900,410	1,850,390	1,759,570	1,645,630	1,587,290	1,571,920	1,553,660	1,581,110	1,467,400
Financial leverage ratio		1.93	1.95	2.00	2.04	2.05	2.15	2.20	2.22	2.10	2.11	2.07	2.10	2.16	2.19	2.32	2.38	2.27	2.23	2.27	2.33

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,451,890K ÷ $2,306,820K
= 1.93

The financial leverage ratio for Aptargroup Inc. has been showing a somewhat increasing trend over the past eight quarters. The ratio has moved from 2.05 in Q4 2022 to 2.04 in Q1 2023 and then further declined to 2.00 in Q2 2023. However, from Q2 2023 to Q4 2023, the ratio increased to 1.93, indicating a slight improvement in financial leverage.

A financial leverage ratio above 1 implies that the company has more debt than equity in its capital structure. Aptargroup Inc.'s ratio has been consistently above 1, indicating a higher level of debt relative to equity.

It is important to note that a higher financial leverage ratio can potentially increase financial risk as the company relies more on debt to finance its operations. However, it can also magnify returns for shareholders in good economic conditions.

Overall, Aptargroup Inc.'s financial leverage ratio has fluctuated but generally remained at levels indicating a significant reliance on debt financing. Investors and analysts may want to monitor this ratio along with other financial metrics to assess the company's overall financial health and risk profile.