Amphenol Corporation (APH)

Activity ratios

Short-term

Turnover 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
Inventory turnover	3.91	4.02	4.27	4.09	4.11	4.08	4.00	3.95	3.95	3.61	3.79	4.01	4.06	4.13	4.11	4.21	4.28	4.43	4.43	4.59
Receivables turnover	4.79	4.85	5.14	5.24	4.80	4.70	4.64	4.73	4.43	4.66	4.72	4.72	4.41	4.43	4.89	5.28	4.74	4.91	4.94	4.99
Payables turnover	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	6.47	6.80	6.93	7.05
Working capital turnover	3.41	3.23	3.48	3.19	3.32	3.38	3.20	3.09	3.10	2.55	2.80	2.50	2.70	2.95	2.86	2.43	3.96	3.93	3.84	3.35

Amphenol Corp. has maintained a relatively stable inventory turnover ratio over the past eight quarters, ranging from 3.91 to 4.27. This indicates that the company efficiently manages its inventory levels, converting inventory into sales effectively.

The receivables turnover ratio has shown a consistent upward trend, increasing from 4.70 in Q3 2022 to 5.24 in Q1 2023. This suggests that Amphenol Corp. has been successful in collecting outstanding receivables in a shorter period, improving its liquidity position.

The payables turnover ratio has also been increasing steadily, indicating that the company is taking longer to pay its suppliers. This may imply that Amphenol Corp. is effectively managing its cash flow by extending payment terms with its vendors.

The working capital turnover ratio has fluctuated slightly but remains above 3.0 in all quarters, indicating that Amphenol Corp. is generating sales efficiently relative to its working capital. This suggests that the company is utilizing its resources effectively to drive revenue growth.

Overall, the activity ratios of Amphenol Corp. demonstrate effective management of inventory, receivables, payables, and working capital, which are essential components of its operational efficiency and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	93.38	90.72	85.49	89.34	88.91	89.55	91.28	92.51	92.49	101.10	96.37	90.93	89.93	88.35	88.82	86.66	85.25	82.32	82.40	79.55
Days of sales outstanding (DSO)	days	76.12	75.28	71.00	69.62	76.08	77.65	78.65	77.20	82.38	78.31	77.36	77.37	82.84	82.45	74.72	69.17	77.05	74.29	73.85	73.14
Number of days of payables	days	58.21	53.98	47.79	50.17	55.59	59.99	61.32	59.32	64.07	67.31	65.54	62.21	68.92	68.34	60.52	53.45	56.40	53.70	52.63	51.79

Amphenol Corp.'s activity ratios provide insight into how efficiently the company manages its working capital.

1. Days of Inventory on Hand (DOH): The trend of DOH shows that the number of days Amphenol holds inventory has been increasing slightly over the past few quarters, indicating a potential buildup of inventory. This may signify either a slower turnover of inventory or an increase in inventory levels due to changes in demand or production.

2. Days of Sales Outstanding (DSO): The DSO trend has been relatively stable, with slight fluctuations quarter by quarter. This metric measures how long it takes for the company to collect revenue after a sale. A consistent DSO indicates that Amphenol has been efficient in collecting its accounts receivable in a timely manner.

3. Number of Days of Payables: The trend in the number of days of payables shows a decreasing pattern, indicating that Amphenol has been paying its suppliers more quickly over the past quarters. This can be beneficial in maintaining good relationships with suppliers but may also suggest potential cash management strategies to improve working capital efficiency.

Overall, while Amphenol Corp. appears to efficiently manage its accounts receivable, the increasing days of inventory on hand and decreasing number of days of payables suggest a need to further evaluate inventory management and payment strategies to ensure optimal utilization of working capital.

Long-term

	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
Fixed asset turnover	9.55	10.00	9.98	10.17	10.48	10.64	10.33	9.75	9.25	8.74	8.36	8.47	8.15	8.03	8.09	8.27	8.23	8.60	8.59	8.90
Total asset turnover	0.76	0.79	0.82	0.82	0.82	0.82	0.80	0.77	0.74	0.69	0.67	0.69	0.70	0.71	0.72	0.67	0.76	0.78	0.78	0.81

Amphenol Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in generating sales relative to its assets.

The fixed asset turnover ratio, which measures how effectively the company utilizes its fixed assets to generate revenue, shows a consistent trend of above 9.0 over the past eight quarters, indicating efficient utilization of fixed assets. The ratio has ranged between 9.55 and 10.64, with a slight decrease in the most recent quarters. Despite the slight decline, the company maintains a high level of efficiency in generating sales from its fixed assets.

On the other hand, the total asset turnover ratio, which indicates the company's ability to generate sales from all assets, also demonstrates a relatively stable performance over the period. The ratio ranges from 0.76 to 0.82, with a slight fluctuation but overall maintaining around the 0.80 mark. This suggests that Amphenol Corp. is effectively utilizing its total assets to generate revenue, although there may be potential for slight improvement in asset productivity.

Overall, the long-term activity ratios of Amphenol Corp. indicate a strong level of efficiency in utilizing both fixed and total assets to drive sales. The company's ability to generate revenue from its assets reflects a sound operational performance and effectiveness in managing its asset base.