Amkor Technology Inc (AMKR)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,476,360 | 7,049,700 | 6,085,840 | 4,981,050 | 4,052,650 |
| Total current assets | US$ in thousands | 3,195,810 | 3,301,240 | 2,856,560 | 2,132,930 | 2,001,530 |
| Total current liabilities | US$ in thousands | 1,384,480 | 1,662,410 | 1,679,740 | 1,315,990 | 1,059,800 |
| Working capital turnover | 3.58 | 4.30 | 5.17 | 6.10 | 4.30 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,476,360K ÷ ($3,195,810K – $1,384,480K)
= 3.58
AMKOR Technology Inc.'s working capital turnover has fluctuated over the past five years. The ratio decreased from 4.30 in 2019 to 3.59 in 2023, indicating a decline in the efficiency of utilizing working capital to generate sales. Generally, a higher working capital turnover ratio indicates better efficiency in managing working capital to support sales. However, the company experienced a peak in efficiency in 2020, with a working capital turnover ratio of 6.18, which suggests a strong ability to convert working capital into revenue during that year.
The decreasing trend from 2020 to 2023 may signal challenges in managing working capital effectively in relation to sales generation. It is important for the company to analyze the underlying reasons for this decline and consider strategies to improve working capital management efficiency going forward. Additionally, benchmarking against industry peers could provide insights into best practices and potential areas for improvement.
Peer comparison
Dec 31, 2023