Amkor Technology Inc (AMKR)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.08 | 23.30 | 25.52 | 22.19 | 25.81 | 30.83 | 33.74 | 35.98 | 39.88 | 44.00 | 44.32 | 36.79 | 36.03 | 35.05 | 31.04 | 26.43 | 26.15 | 27.27 | 29.47 | 24.20 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 21.08 | 23.30 | 25.52 | 22.19 | 25.81 | 30.83 | 33.74 | 35.98 | 39.88 | 44.00 | 44.32 | 36.79 | 36.03 | 35.05 | 31.04 | 26.43 | 26.15 | 27.27 | 29.47 | 24.20 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.08 + — – —
= 21.08
The cash conversion cycle of Amkor Technology Inc has shown fluctuations over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
Looking at the data provided, we observe that the company's cash conversion cycle increased from 24.20 days on March 31, 2020, to a peak of 44.32 days on June 30, 2022, before gradually declining to 21.08 days on December 31, 2024.
During this period, Amkor Technology Inc experienced variability in its working capital management efficiency. A longer cash conversion cycle indicates that the company is taking more time to convert its inventory and accounts receivable into cash, which could potentially strain its liquidity and working capital position.
On the other hand, a shorter cash conversion cycle suggests improved efficiency in managing working capital, allowing the company to generate cash more quickly from its operations.
Overall, by analyzing the trend of the cash conversion cycle, investors and stakeholders can assess Amkor Technology Inc's ability to effectively manage its working capital and generate cash flows, which is crucial for its financial health and operational stability.
Peer comparison
Dec 31, 2024