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.