Amkor Technology Inc (AMKR)

Amkor Technology Inc's liquidity ratios have shown a positive trend over the years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has steadily increased from 1.62 in 2020 to 2.11 in 2024. This indicates that the company has improved its short-term liquidity position.

Similarly, the quick ratio, also known as the acid-test ratio, reflects the company's ability to meet its immediate short-term obligations using its most liquid assets. This ratio has shown a consistent improvement from 0.63 in 2020 to 1.13 in 2024, suggesting that Amkor Technology Inc has enhanced its ability to cover short-term liabilities without relying on inventory.

Furthermore, the cash ratio, which measures the company's ability to pay off its current liabilities using only its cash and cash equivalents, has also demonstrated an upward trend over the years. The ratio has increased from 0.63 in 2020 to 1.13 in 2024, indicating that Amkor Technology Inc has strengthened its ability to settle its short-term obligations solely with cash on hand.

Overall, based on the liquidity ratios, Amkor Technology Inc appears to have enhanced its liquidity position and ability to meet its short-term financial obligations efficiently and effectively over the years.

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Additional liquidity measure

The cash conversion cycle of Amkor Technology Inc has fluctuated over the past five years. At the end of 2020, the company's cash conversion cycle was 26.15 days, indicating that it took approximately 26 days for the company to convert its investments in inventory and accounts receivable into cash receipts from sales.

By the end of 2021, the cash conversion cycle had increased to 36.03 days, suggesting that the company took longer to convert its investments into cash. The trend continued in 2022, with the cash conversion cycle growing to 39.88 days, indicating a further delay in the cash conversion process.

However, there was a notable improvement in 2023, as the cash conversion cycle decreased to 25.81 days, indicating that the company was able to convert its investments into cash more efficiently compared to the prior year.

By the end of 2024, the cash conversion cycle further reduced to 21.08 days, showcasing a positive trend in the company's working capital management and suggesting that Amkor Technology Inc was able to shorten the time it takes to convert its investments into cash.

Overall, fluctuations in the cash conversion cycle can provide insights into the company's liquidity, operational efficiency, and effectiveness in managing its working capital. It is essential for Amkor Technology Inc to monitor and optimize its cash conversion cycle to ensure efficient cash flow management and sustainable business operations.