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.
Peer comparison
Dec 31, 2023