Amphenol Corporation (APH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,222,700 | 12,554,700 | 12,623,000 | 10,876,300 | 8,598,900 |
| Total current assets | US$ in thousands | 9,686,000 | 6,835,300 | 6,479,100 | 5,958,200 | 5,490,800 |
| Total current liabilities | US$ in thousands | 4,083,800 | 3,152,700 | 2,676,100 | 2,447,100 | 2,304,300 |
| Working capital turnover | 2.72 | 3.41 | 3.32 | 3.10 | 2.70 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,222,700K ÷ ($9,686,000K – $4,083,800K)
= 2.72
The trend in Amphenol Corporation's working capital turnover ratio over the past five years shows some fluctuations. The ratio increased from 2.70 in December 31, 2020, to 3.10 in December 31, 2021, indicating an improvement in the efficiency of working capital management. This upward trend continued as the ratio further increased to 3.32 in December 31, 2022, and 3.41 in December 31, 2023, suggesting a positive trend in utilizing working capital effectively.
However, a slight decline was observed in the working capital turnover ratio in December 31, 2024, dropping to 2.72. This decrease may raise some concerns about the company's ability to efficiently convert working capital into revenue during that period.
Overall, Amphenol Corporation has demonstrated generally positive performance in managing its working capital efficiently, with some fluctuations seen over the years. The company should continue monitoring and optimizing its working capital turnover to ensure effective utilization of resources and maintain a healthy financial position.