Amkor Technology Inc (AMKR)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.89 | 1.68 | 1.46 | 1.36 |
| Quick ratio | 2.17 | 1.80 | 1.69 | 1.83 | 1.75 | 1.55 | 1.43 | 1.59 | 1.53 | 1.35 | 1.30 | 1.45 | 1.48 | 1.50 | 1.67 | 1.92 | 1.77 | 1.52 | 1.29 | 1.24 |
| Cash ratio | 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 | 0.85 | 0.60 | 0.53 | 0.72 |
AMKOR Technology Inc.'s liquidity ratios have shown some fluctuations over the past eight quarters.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally trended upwards over the period. The ratio increased from 1.99 in Q4 2022 to 2.31 in Q4 2023, indicating an improvement in the company's liquidity position.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also increased over the same period, although the trend is not as consistent as the current ratio. The quick ratio improved from 1.61 in Q4 2022 to 2.02 in Q4 2023, suggesting that the company has a stronger ability to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative measure of liquidity and indicates the proportion of current liabilities that could be covered by cash and cash equivalents, has shown a similar trend of improvement. The ratio increased from 0.79 in Q4 2022 to 1.19 in Q4 2023, signaling an enhanced liquidity position for the company.
Overall, the improving trend in all three liquidity ratios suggests that AMKOR Technology Inc. has been managing its short-term liquidity effectively and has a stronger ability to meet its obligations as they come due.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 57.12 | 72.74 | 67.82 | 68.69 | 70.10 | 82.16 | 66.58 | 65.39 | 63.87 | 69.55 | 58.93 | 51.50 | 51.00 | 57.33 | 57.08 | 52.73 | 50.33 | 55.74 | 45.85 | 42.83 |
The cash conversion cycle of AMKOR Technology Inc. has exhibited fluctuations over the past eight quarters. The company's cash conversion cycle, which represents the time taken to convert inputs such as raw materials into cash inflows from sales, was 40.80 days in Q4 2023. This marks an improvement from the previous quarter's figure of 54.81 days in Q3 2023.
However, the cash conversion cycle had been relatively higher in the two preceding quarters of Q2 2023 and Q1 2023 at 52.68 days and 54.85 days, respectively.
Looking back to Q4 2022, there was a minor decrease in the cash conversion cycle compared to Q3 2022, standing at 53.20 days. Before that, there was a notable increase in the cycle in Q3 2022, reaching 64.92 days, which was higher compared to Q2 2022 at 50.09 days and Q1 2022 at 51.53 days.
Overall, the trend in AMKOR Technology Inc.'s cash conversion cycle shows some variability over the quarters, with fluctuations observed in the time taken to convert inputs into cash inflows from sales. It is crucial for the company to manage its working capital efficiently to optimize its cash conversion cycle and improve its overall liquidity position.