Amphenol Corporation (APH)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,082,900 | 9,472,900 | 8,941,700 | 8,607,300 | 8,470,600 | 8,445,200 | 8,529,700 | 8,600,100 | 8,594,800 | 8,478,700 | 8,172,100 | 7,850,200 | 7,474,500 | 7,049,300 | 6,709,200 | 6,282,200 | 5,934,800 | 5,746,700 | 5,596,900 | 5,580,900 |
| Payables | US$ in thousands | 1,819,400 | 1,763,000 | 1,521,400 | 1,264,700 | 1,350,900 | 1,248,900 | 1,116,800 | 1,182,100 | 1,309,100 | 1,393,600 | 1,372,900 | 1,275,900 | 1,312,000 | 1,300,000 | 1,204,700 | 1,070,700 | 1,120,700 | 1,075,900 | 928,000 | 817,200 |
| Payables turnover | 5.54 | 5.37 | 5.88 | 6.81 | 6.27 | 6.76 | 7.64 | 7.28 | 6.57 | 6.08 | 5.95 | 6.15 | 5.70 | 5.42 | 5.57 | 5.87 | 5.30 | 5.34 | 6.03 | 6.83 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,082,900K ÷ $1,819,400K
= 5.54
The payables turnover ratio for Amphenol Corporation has fluctuated over the years from March 31, 2020, to December 31, 2024. The ratio measures how efficiently the company pays its suppliers. A higher turnover ratio indicates that the company is settling its accounts payable more frequently.
During the period analyzed, the payables turnover ratio ranged from a low of 5.30 on December 31, 2020, to a high of 7.64 on June 30, 2023. The ratio showed an increasing trend from September 30, 2022, to June 30, 2023, where it peaked before slightly decreasing by the end of December 31, 2024.
Overall, the average payables turnover ratio for Amphenol Corporation over the period was 6.19. This suggests that, on average, the company pays its suppliers approximately 6.19 times per year, indicating a reasonably efficient management of its accounts payable. An increasing ratio trend could possibly signal improved cash management practices or negotiating better payment terms with suppliers. Understanding and analyzing these trends provide key insights into the company's liquidity management and supplier relationships.