Amkor Technology Inc (AMKR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 15.00 | 9.64 | 10.77 | 15.06 | 15.43 |
| Receivables turnover | 4.59 | 4.23 | 4.10 | 4.49 | 4.15 |
| Payables turnover | 7.82 | 6.75 | 6.31 | 7.03 | 5.96 |
| Working capital turnover | 3.58 | 4.30 | 5.17 | 6.10 | 4.30 |
AMKOR Technology Inc.'s activity ratios provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital.
1. Inventory turnover: The company's inventory turnover ratio has shown fluctuations over the years, ranging from 9.15 to 15.43. In 2023, AMKOR significantly improved its inventory turnover to 14.14, indicating that it sold and replaced its inventory more frequently during the year compared to previous years. A higher inventory turnover suggests effective inventory management and potential sales growth.
2. Receivables turnover: AMKOR's receivables turnover ratio has also varied but generally improved from 4.76 in 2019 to 5.66 in 2023. This indicates that the company collected its accounts receivable more quickly in 2023, reflecting efficient credit policies and effective collection efforts.
3. Payables turnover: The payables turnover ratio for AMKOR has been consistently above 5 in recent years, with a notable increase to 7.37 in 2023. This suggests that the company is paying its trade payables at a faster rate, which could indicate stronger vendor relationships or improved cash flow management.
4. Working capital turnover: AMKOR's working capital turnover ratio has displayed some variability but has generally remained above 3, indicating the company generates sales revenue relative to its working capital investment. The slight decline in 2023 to 3.59 suggests a slightly lower efficiency in converting working capital into sales compared to the previous year.
Overall, AMKOR Technology Inc. has shown improvements in its activity ratios, particularly in inventory turnover and receivables turnover, which indicate enhanced operational efficiency and effective management of its assets and liabilities.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.33 | 37.87 | 33.88 | 24.24 | 23.66 |
| Days of sales outstanding (DSO) | days | 79.48 | 86.32 | 88.97 | 81.30 | 87.92 |
| Number of days of payables | days | 46.69 | 54.08 | 57.89 | 51.88 | 61.25 |
AMKOR Technology Inc.'s activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying its liabilities. The days of inventory on hand (DOH) decreased from 39.88 days in 2022 to 25.81 days in 2023, indicating a more efficient management of inventory levels. This suggests the company may be turning over its inventory more quickly, potentially reducing the risk of obsolete inventory.
The days of sales outstanding (DSO) decreased from 70.28 days in 2022 to 64.52 days in 2023, showing an improvement in the collection of receivables. A lower DSO indicates that the company is collecting on its sales more promptly, which can improve cash flows and overall liquidity.
The number of days of payables decreased from 56.96 days in 2022 to 49.53 days in 2023, indicating that the company is taking longer to pay its bills. While stretching payables can improve cash flow, it may also strain relationships with suppliers if not managed carefully.
Overall, the trend in these activity ratios suggests that AMKOR Technology Inc. has been increasingly efficient in managing its working capital components, which can contribute to improved financial performance and liquidity.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.96 | 2.25 | 2.12 | 1.94 | 1.69 |
| Total asset turnover | 0.96 | 1.03 | 1.01 | 0.99 | 0.86 |
From the data provided, we can observe that AMKOR Technology Inc.'s long-term activity ratios have shown some fluctuations over the past five years.
The fixed asset turnover ratio has varied between 1.69 and 2.26 during this period. This ratio indicates how efficiently the company utilizes its fixed assets to generate sales. A higher ratio signifies better utilization of fixed assets to generate revenue. AMKOR's fixed asset turnover has generally been improving, reaching a peak in 2022 at 2.26 and then slightly declining to 1.97 in 2023. This suggests that the company has been able to generate more revenue per dollar invested in fixed assets, although there was a slight dip in efficiency in the most recent year.
On the other hand, the total asset turnover ratio has ranged between 0.86 and 1.04 over the same period. This ratio measures the efficiency of the company in generating sales from all its assets. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets. AMKOR's total asset turnover has been fluctuating within a relatively narrow range, with a slight increase from 0.86 in 2019 to 1.04 in 2022, before decreasing to 0.96 in 2023. This suggests that the company may have experienced challenges in efficiently utilizing its total assets to generate revenue in the most recent year.
Overall, AMKOR Technology Inc.'s long-term activity ratios indicate that the company has been gradually improving its efficiency in generating sales from both fixed and total assets over the years, with some fluctuations in performance noted. Further analysis and comparison with industry benchmarks would be beneficial to assess the company's performance in a broader context.