Amphenol Corporation (APH)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 92.15 | 99.36 | 97.92 | 91.30 | 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 |
| Days of sales outstanding (DSO) | days | 78.84 | 80.28 | 77.82 | 71.12 | 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 |
| Number of days of payables | days | 65.86 | 67.93 | 62.10 | 53.63 | 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 |
| Cash conversion cycle | days | 105.13 | 111.71 | 113.64 | 108.79 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 92.15 + 78.84 – 65.86
= 105.13
The cash conversion cycle of Amphenol Corporation has been relatively stable over the past few years, hovering around the 100 to 110 days range.
From March 31, 2020, to December 31, 2024, the cash conversion cycle fluctuated within a narrow range, with a peak of 113.64 days on June 30, 2024, and a low of 102.38 days on March 31, 2020.
Overall, the cash conversion cycle indicates the average number of days it takes for Amphenol Corporation to convert its investments in inventory and other resources into cash inflows from sales to customers and then back into cash through the payment collection process.
Monitoring the cash conversion cycle is crucial for assessing the efficiency of the company's working capital management and operational performance. A shorter cash conversion cycle typically suggests better liquidity and efficiency, highlighting the company's ability to manage its inventories, receivables, and payables effectively.
Although Amphenol Corporation's cash conversion cycle has shown some fluctuations, the company has generally maintained a reasonable cycle duration, indicating a prudent approach to managing its cash flow and working capital requirements.