Amphenol Corporation (APH)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.37 | 2.17 | 2.42 | 2.43 | 2.38 |
| Quick ratio | 1.62 | 1.36 | 1.52 | 1.51 | 1.60 |
| Cash ratio | 0.82 | 0.53 | 0.54 | 0.51 | 0.75 |
Amphenol Corporation has displayed a consistent and healthy liquidity position based on its liquidity ratios. The current ratio has shown stability over the years, remaining above 2, which indicates the company has more than enough current assets to cover its current liabilities. The slight decrease in the current ratio in 2023 may warrant further investigation to ensure sustained liquidity.
The quick ratio, which is a more stringent measure of liquidity, also reflects a strong position for Amphenol Corporation. Although it has fluctuated slightly, the company has consistently maintained a quick ratio above 1, signifying its ability to meet short-term obligations without relying on its inventory.
The cash ratio, which is the most conservative liquidity measure, has shown variability but generally indicates that Amphenol Corporation holds an ample amount of cash and cash equivalents to cover its current liabilities. The significant increase in the cash ratio in 2024 suggests an improved liquidity position, which could be attributed to effective cash management practices or changes in the company's operating environment.
Overall, based on these liquidity ratios, Amphenol Corporation appears to be well-positioned to meet its short-term financial obligations and manage its liquidity effectively.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 105.13 | 111.29 | 109.40 | 110.81 | 103.84 |
The cash conversion cycle of Amphenol Corporation has shown some fluctuations over the past five years. It increased from 103.84 days in 2020 to 110.81 days in 2021, then slightly decreased to 109.40 days in 2022. However, in 2023, there was a slight increase to 111.29 days before falling back to 105.13 days in 2024.
A higher cash conversion cycle indicates that it takes longer for the company to convert its investments in inventory and accounts receivable into cash from sales. This could potentially tie up more of the company's capital and affect its liquidity.
Overall, in the case of Amphenol Corporation, the cash conversion cycle has remained relatively stable over the years, showing minor fluctuations that could be influenced by various factors such as changes in inventory management or payment terms with customers and suppliers.