Amkor Technology Inc (AMKR)

Liquidity ratios

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
Current ratio 2.11 2.06 2.08 2.34 2.31 1.95 1.90 2.08 1.99 1.79 1.66 1.81 1.70 1.48 1.41 1.61 1.62 1.65 1.83 2.06
Quick ratio 1.13 0.94 1.03 1.21 1.15 0.73 0.76 0.86 0.75 0.52 0.62 0.72 0.64 0.45 0.53 0.62 0.63 0.67 0.85 0.95
Cash ratio 1.13 0.94 1.03 1.21 1.15 0.73 0.76 0.86 0.75 0.52 0.62 0.72 0.64 0.45 0.53 0.62 0.63 0.67 0.85 0.95

Amkor Technology Inc has shown relatively stable current ratios over the period analyzed, ranging from a low of 1.41 in June 2021 to a high of 2.34 in March 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets. Generally, a ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive sign for creditors.

In terms of quick ratios, Amkor Technology Inc has also displayed consistency, with values fluctuating between 0.45 and 1.21. The quick ratio, which is a more stringent measure of liquidity as it excludes inventories from current assets, shows the company's ability to meet its short-term obligations without relying on inventory sales. A ratio above 1 is desirable as it suggests the company can cover its current liabilities using its most liquid assets.

The cash ratio for Amkor Technology Inc remains relatively strong, ranging from 0.45 to 1.21 over the period examined. The cash ratio focuses solely on cash and cash equivalents compared to current liabilities, providing insight into the company's ability to pay off its short-term debts immediately. A ratio above 1 indicates that the company possesses enough cash to cover its current liabilities.

Overall, Amkor Technology Inc's liquidity ratios suggest that the company generally maintains a healthy ability to meet its short-term obligations. However, a downward trend in these ratios may indicate potential liquidity challenges that should be monitored closely.

Additional liquidity measure

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
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

The cash conversion cycle of Amkor Technology Inc has shown fluctuations over the periods outlined in the data provided. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Looking at the trend in Amkor's cash conversion cycle, we observe that it ranged between approximately 22 to 44 days over the specified periods. A lower number of days indicates that the company is able to convert its investments into cash more quickly, which is generally favorable.

Initially, from March 31, 2020 to December 31, 2021, the cash conversion cycle ranged between 24 and 36 days, showing relative stability. However, from June 30, 2022 to December 31, 2024, there was a downward trend in the days it takes to convert investments into cash, reaching a low of around 21 days by the end of December 31, 2024. This could suggest more efficient management of inventory and receivables during these periods.

Overall, a lower and decreasing cash conversion cycle indicates that Amkor Technology Inc was managing its cash flow efficiently, possibly through better inventory management and collection processes, which may have positive implications for its financial health and liquidity position. However, we would need to consider other factors and ratios to get a more holistic view of the company's financial performance.