Amkor Technology Inc (AMKR)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Amkor Technology Inc:

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently a company is managing its inventory. A higher ratio suggests that inventory is selling quickly.
- Amkor's inventory turnover has fluctuated over the years, decreasing from 13.96 in 2020 to 9.15 in 2022, before increasing to 17.32 in 2024.
- The increasing trend in recent years indicates that Amkor is managing its inventory more efficiently, selling products at a faster rate.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is collecting payments from its customers.
- The data provided shows that receivables turnover is not available for any of the years, indicating a lack of information on how quickly Amkor collects payments from customers.

3. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers.
- Similar to receivables turnover, the data does not provide information on payables turnover for any of the years, making it difficult to assess how Amkor manages its payables.

4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently a company utilizes its working capital to generate sales.
- Amkor's working capital turnover has decreased from 6.18 in 2020 to 3.90 in 2024.
- The declining trend suggests that Amkor may be less efficient in using its working capital to generate sales in recent years.

In conclusion, while the inventory turnover ratio indicates an improvement in inventory management efficiency, the lack of data on receivables and payables turnover limits a comprehensive analysis of Amkor's overall activity ratios. The decreasing trend in working capital turnover raises concerns about the company's efficiency in utilizing working capital to drive sales.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Amkor Technology Inc as follows:

1. Days of Inventory on Hand (DOH):
- The DOH for Amkor Technology Inc has shown varying trends over the years:
- It increased from 26.15 days as of December 31, 2020, to 39.88 days as of December 31, 2022, indicating a potential buildup of inventory.
- However, there was a decrease in DOH to 21.08 days as of December 31, 2024, suggesting improved inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for analysis, which makes it difficult to assess the efficiency of Amkor's accounts receivable management during the specified periods.

3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is not provided, hampering the evaluation of Amkor's accounts payable management performance throughout the given years.

In conclusion, while the analysis of inventory turnover based on DOH indicates fluctuations in inventory management efficiency, the absence of DSO and payables data restricts a comprehensive assessment of Amkor Technology Inc's overall activity ratios for accounts receivable and accounts payable aspects.

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Long-term

Amkor Technology Inc's fixed asset turnover has shown a positive trend over the years, increasing from 1.86 in 2020 to 2.14 in 2022. This indicates that the company is generating more revenue relative to its investment in fixed assets, showcasing improved efficiency in utilizing these assets to generate sales.

However, the lack of data for 2023 and 2024 limits a comprehensive analysis of the fixed asset turnover in those years.

In terms of total asset turnover, Amkor's performance has been relatively stable, with a slight increase from 1.01 in 2020 to 1.04 in 2022, before declining to 0.91 in 2024. This ratio indicates how efficiently the company is using its total assets to generate sales. The lower ratios in 2023 and 2024 may suggest a decrease in sales generated per dollar of total assets, which warrants further investigation into the reasons behind this decline.

Overall, while the fixed asset turnover has shown improvement, the fluctuations in total asset turnover highlight the need for a deeper analysis to understand the underlying drivers affecting Amkor Technology Inc's long-term activity ratios.