Amphenol Corporation (APH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,475,000 | 1,373,100 | 1,197,100 | 1,702,000 | 891,200 |
| Short-term investments | US$ in thousands | 185,200 | 61,100 | 44,300 | 36,100 | 17,400 |
| Total current liabilities | US$ in thousands | 3,152,700 | 2,676,100 | 2,447,100 | 2,304,300 | 2,132,700 |
| Cash ratio | 0.53 | 0.54 | 0.51 | 0.75 | 0.43 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,475,000K
+ $185,200K)
÷ $3,152,700K
= 0.53
The cash ratio of Amphenol Corp. has shown some fluctuations over the last five years. The ratio was at its highest in 2020 at 0.90, indicating that the company had $0.90 in cash and cash equivalents for every $1 of current liabilities. Subsequently, the ratio declined to 0.65 in 2023, suggesting a decrease in the company's ability to cover its short-term obligations solely with cash and cash equivalents.
Although the cash ratio has fluctuated, it has remained above 1 in all years, indicating that Amphenol Corp. has had more than enough cash on hand to cover its current liabilities. However, the downward trend in the cash ratio in recent years may be a cause for further analysis and monitoring to ensure the company's liquidity position remains strong.