AptarGroup Inc (ATR)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	4,432,280	4,625,220	4,453,260	4,437,090	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
Total stockholders’ equity	US$ in thousands	2,471,890	2,539,010	2,396,450	2,348,860	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
Financial leverage ratio		1.79	1.82	1.86	1.89	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,432,280K ÷ $2,471,890K
= 1.79

The financial leverage ratio of AptarGroup Inc has shown a declining trend over the past few years, indicating a decreasing reliance on debt to finance its operations. As of December 31, 2024, the financial leverage ratio stands at 1.79, which means that the company's debt accounts for approximately 1.79 times its equity. This suggests that AptarGroup has a conservative capital structure, with a lower level of debt relative to its equity.

The decreasing trend in the financial leverage ratio indicates that the company is becoming more financially stable and less leveraged, which can be seen as a positive sign for investors and creditors. However, it is important to note that a very low leverage ratio could also imply underutilization of debt financing, potentially limiting the company's growth opportunities.

Overall, AptarGroup's declining financial leverage ratio reflects a prudent approach to managing its capital structure and debt levels, which may enhance its financial flexibility and resilience in the long run.