Amkor Technology Inc (AMKR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 15.00 | 12.49 | 11.39 | 10.69 | 9.64 | 8.74 | 8.60 | 10.24 | 10.31 | 10.62 | 12.01 | 14.11 | 14.27 | 13.38 | 12.39 | 15.08 | 15.43 | 15.45 | 15.57 | 15.44 |
| Receivables turnover | 4.59 | 3.88 | 4.69 | 4.89 | 4.23 | 3.71 | 4.48 | 4.47 | 4.10 | 3.72 | 4.23 | 4.78 | 4.55 | 4.26 | 4.36 | 4.26 | 4.15 | 4.33 | 5.08 | 5.45 |
| Payables turnover | 7.82 | 7.21 | 8.68 | 9.11 | 6.75 | 6.31 | 6.37 | 7.02 | 6.03 | 5.81 | 6.33 | 7.20 | 6.67 | 6.56 | 6.52 | 6.39 | 5.96 | 7.00 | 7.37 | 7.65 |
| Working capital turnover | 3.58 | 4.35 | 4.84 | 4.39 | 4.30 | 4.84 | 5.46 | 4.82 | 5.17 | 6.92 | 7.89 | 6.55 | 6.18 | 5.44 | 4.33 | 3.90 | 4.30 | 5.90 | 8.47 | 7.82 |
AMKOR Technology Inc. has shown consistent improvement in its inventory turnover ratio over the past eight quarters, indicating that the company is efficiently managing its inventory levels. This implies that the company is able to sell its inventory quickly and effectively, reducing the risk of obsolete inventory and potential storage costs.
In terms of receivables turnover, AMKOR's performance has also been relatively stable, with slight fluctuations over the quarters. A higher receivables turnover ratio indicates that the company is efficient in collecting payments from its customers, which is a positive sign for cash flow management.
The payables turnover ratio for AMKOR has shown an increasing trend, suggesting that the company is taking longer to pay its suppliers. This could be a strategy to optimize cash flow and working capital management, although it may also indicate potential challenges in supplier relationships.
The working capital turnover ratio reflects the company's ability to generate revenue relative to its working capital. AMKOR's ratio has fluctuated over the quarters but generally remained at a relatively stable level. A higher working capital turnover ratio indicates effective utilization of working capital to generate sales.
Overall, AMKOR Technology Inc. appears to be managing its activity ratios well, with efficient inventory turnover, stable receivables turnover, and working capital turnover ratios. However, close monitoring of the increasing payables turnover ratio is recommended to ensure sustainable supplier relationships and cash flow management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.33 | 29.23 | 32.05 | 34.16 | 37.87 | 41.75 | 42.45 | 35.66 | 35.41 | 34.36 | 30.39 | 25.86 | 25.57 | 27.27 | 29.47 | 24.20 | 23.66 | 23.63 | 23.44 | 23.64 |
| Days of sales outstanding (DSO) | days | 79.48 | 94.14 | 77.84 | 74.58 | 86.32 | 98.27 | 81.41 | 81.74 | 88.97 | 98.06 | 86.24 | 76.35 | 80.18 | 85.72 | 83.62 | 85.69 | 87.92 | 84.23 | 71.91 | 66.92 |
| Number of days of payables | days | 46.69 | 50.63 | 42.07 | 40.05 | 54.08 | 57.85 | 57.27 | 52.01 | 60.51 | 62.87 | 57.70 | 50.71 | 54.75 | 55.66 | 56.01 | 57.16 | 61.25 | 52.12 | 49.50 | 47.74 |
AMKOR Technology Inc.'s activity ratios provide insight into the efficiency of the company's operations in managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- The trend of DOH indicates that AMKOR has effectively reduced the number of days it takes to turn its inventory into sales over the quarters, which is a positive sign.
- The company has decreased its DOH from 39.88 days in Q4 2022 to 25.81 days in Q4 2023, reflecting improved inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- The DSO ratio shows the average number of days it takes for AMKOR to collect its accounts receivable.
- AMKOR has demonstrated a reduction in DSO from 70.28 days in Q4 2022 to 64.52 days in Q4 2023, indicating a more efficient collection process.
3. Number of Days of Payables:
- The number of days of payables measures how long a company takes to pay its suppliers.
- AMKOR has managed to reduce its payment period from 56.96 days in Q4 2022 to 49.53 days in Q4 2023, suggesting a more balanced approach to managing its payables.
In summary, AMKOR Technology Inc. has shown improvements in managing its inventory, receivables, and payables, which indicates enhanced operational efficiency and effective working capital management. The trends in these activity ratios suggest that the company is optimizing its resources and maintaining a healthy balance between its operational components.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.96 | 1.99 | 2.08 | 2.17 | 2.25 | 2.21 | 2.10 | 2.16 | 2.12 | 1.99 | 1.90 | 1.99 | 1.97 | 1.90 | 1.86 | 1.82 | 1.69 | 1.60 | 1.60 | 1.63 |
| Total asset turnover | 0.96 | 0.98 | 1.04 | 1.05 | 1.03 | 1.02 | 1.01 | 1.02 | 1.01 | 1.00 | 0.98 | 1.03 | 1.01 | 0.95 | 0.90 | 0.90 | 0.86 | 0.90 | 0.93 | 0.86 |
AMKOR Technology Inc.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover ratios, provide insights into how efficiently the company is utilizing its assets to generate revenue.
The fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its fixed assets. The trend in AMKOR's fixed asset turnover ratio over the quarters shows a slight decline from 2.26 in Q4 2022 to 1.97 in Q4 2023. This suggests that the company may be experiencing challenges in optimizing the use of its fixed assets to generate revenue. However, the ratio remained above 1.0 in all quarters, indicating that for each dollar invested in fixed assets, AMKOR is generating sales revenue greater than the value of the assets.
On the other hand, the total asset turnover ratio reflects how effectively the company is utilizing all its assets to generate sales. The trend in AMKOR's total asset turnover ratio indicates a slight fluctuation but generally remains stable around 1.0. This suggests that the company is efficiently utilizing its total assets to generate sales revenue, with each dollar of assets generating close to one dollar of sales.
In comparison, the fixed asset turnover ratio is higher than the total asset turnover ratio, indicating that fixed assets are being utilized more efficiently than the total assets in generating revenue.
Overall, AMKOR Technology Inc.'s long-term activity ratios show that the company is efficiently utilizing its assets to generate sales revenue, with room for improvement in optimizing the use of its fixed assets. It is important for the company to continue monitoring and improving these ratios to enhance and maintain its operational efficiency and profitability.