Amkor Technology Inc (AMKR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,119,820	959,072	826,744	698,002	894,948
Short-term investments	US$ in thousands	474,869	281,964	251,530	133,769	6,348
Total current liabilities	US$ in thousands	1,384,480	1,662,410	1,679,740	1,315,990	1,059,800
Cash ratio		1.15	0.75	0.64	0.63	0.85

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,119,820K + $474,869K) ÷ $1,384,480K
= 1.15

The cash ratio of AMKOR Technology Inc. has exhibited fluctuations over the past five years. The ratio increased from 0.88 in 2019 to 0.66 in 2020 and remained at the same level in 2021. However, there was a notable improvement in the cash ratio in 2022, reaching 0.79, followed by a further increase to 1.19 in 2023.

A cash ratio above 1 indicates that AMKOR Technology Inc. has more cash and cash equivalents than current liabilities, suggesting a strong ability to cover short-term obligations using its liquid assets. This upward trend in the cash ratio from 2020 to 2023 reflects improved liquidity and the company's enhanced ability to meet its short-term financial commitments from readily available cash resources.

It is important to closely monitor the cash ratio to ensure that the company maintains sufficient liquidity to navigate through unforeseen challenges and capitalize on opportunities in the market. Overall, the increasing trend in the cash ratio for AMKOR Technology Inc. over the past few years is a positive indicator of the company's financial health and ability to manage its short-term obligations effectively.