Amphenol Corporation (APH)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 111.30 | 112.03 | 108.70 | 108.79 | 109.40 | 107.20 | 108.61 | 110.39 | 110.81 | 112.09 | 108.19 | 106.09 | 103.84 | 102.46 | 103.01 | 102.38 | 105.90 | 102.91 | 103.62 | 100.90 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 93.38 + 76.12 – 58.21
= 111.30
The cash conversion cycle of Amphenol Corp. has exhibited a relatively stable trend over the last eight quarters, hovering around the 110-day mark. This cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
During Q4 2023, the cash conversion cycle was 111.29 days, which was slightly longer compared to the previous quarter, Q3 2023, which stood at 112.03 days. This suggests that the company took slightly longer to convert its investments into cash during the most recent quarter.
Looking back over the past year, the cash conversion cycle fluctuated within a narrow range, indicating a consistent efficiency in managing working capital. Despite some minor variations, Amphenol Corp. maintained a relatively stable cycle duration, which can be considered a positive sign of effective cash management practices within the organization.
Overall, the cash conversion cycle analysis suggests that Amphenol Corp. has been proficient in managing its working capital efficiently, with a consistent performance over the analyzed quarters.