Amphastar P (AMPH)
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 | 3.07 | 3.43 | 3.52 | 2.18 | 2.17 | 2.10 | 1.53 | 3.86 | 3.99 | 3.76 | 3.64 | 3.19 | 3.06 | 3.10 | 2.50 | 2.36 | 2.49 | 2.86 | 2.86 | 2.96 |
| Quick ratio | 2.06 | 2.45 | 2.55 | 1.68 | 1.65 | 1.62 | 1.07 | 2.78 | 2.79 | 2.56 | 2.55 | 2.27 | 2.08 | 1.97 | 1.49 | 1.52 | 1.53 | 1.56 | 1.59 | 1.50 |
| Cash ratio | 1.28 | 1.58 | 1.59 | 1.13 | 1.14 | 1.16 | 0.65 | 1.83 | 1.85 | 1.80 | 1.77 | 1.64 | 1.32 | 1.17 | 0.94 | 0.91 | 0.94 | 1.02 | 1.06 | 0.80 |
Amphastar P's current ratio, a measure of its short-term liquidity, has shown a generally increasing trend from March 31, 2020, to June 30, 2024, peaking at 3.99 on December 31, 2022. This indicates the company's ability to cover its short-term obligations with its current assets has been improving over the years.
The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also displays an upward trend over the same period, with the highest level recorded at 2.79 on December 31, 2022. This suggests that the company has a strong ability to meet its short-term liabilities using its most liquid assets.
Furthermore, the cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, shows an increasing trend up to June 30, 2022, indicating the company's improved ability to cover its current liabilities with its cash reserves.
Overall, the liquidity ratios of Amphastar P have generally been on an upward trajectory, reflecting an enhanced ability to meet short-term financial obligations and indicating a strong financial position in terms of liquidity management over the analyzed period.
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 | 193.56 | 173.68 | 169.68 | 167.87 | 165.16 | 175.70 | 188.99 | 189.22 | 186.20 | 179.19 | 160.51 | 165.13 | 173.95 | 192.43 | 181.83 | 202.11 | 196.96 | 215.13 | 209.58 | 240.57 |
The cash conversion cycle of Amphastar P has shown fluctuations over the past few years, indicating variations in the efficiency of its working capital management. The cycle, which measures the time it takes for a company to convert its resources into cash flows, has generally trended downwards from 2020 to 2024, suggesting improvements in the company's ability to generate cash from its operations.
In March 2020, the cash conversion cycle was 240.57 days, indicating that the company took over 8 months to convert its resources into cash. However, by December 2024, the cycle had decreased to 193.56 days, showing a significant improvement.
The decreasing trend in the cash conversion cycle implies that Amphastar P has been able to streamline its operations, manage its inventory more efficiently, collect receivables quicker, or negotiate better payment terms with suppliers. This efficiency in managing working capital is crucial for the company's financial health and sustainability.
It is essential for Amphastar P to continue monitoring and optimizing its cash conversion cycle to ensure that it remains efficient and effective in generating cash flows from its core operations. Monitoring and improving this metric can help the company maintain liquidity, reduce financing costs, and support its overall financial performance.