Amphenol Corporation (APH)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,835,300 | 6,479,100 | 5,958,200 | 5,490,800 | 4,211,200 |
| Total current liabilities | US$ in thousands | 3,152,700 | 2,676,100 | 2,447,100 | 2,304,300 | 2,132,700 |
| Current ratio | 2.17 | 2.42 | 2.43 | 2.38 | 1.97 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,835,300K ÷ $3,152,700K
= 2.17
The current ratio of Amphenol Corp. has shown a steady trend over the past five years, ranging from 1.97 in 2019 to 2.43 in 2021, before slightly decreasing to 2.17 in 2023. This ratio indicates the company's ability to cover its short-term liabilities with its current assets. Generally, a current ratio above 1 suggests that the company is able to meet its short-term obligations, with higher ratios indicating greater liquidity.
Despite the slight decrease in the current ratio in 2023, the ratios for all years are comfortably above 1, indicating that Amphenol Corp. has a strong liquidity position. However, it's important to note that a very high current ratio may suggest an inefficient use of assets, as excessive liquidity may not be yielding optimal returns for the company.
Overall, Amphenol Corp.'s current ratio analysis suggests that the company has maintained a healthy liquidity position over the years, albeit with a slight decrease in 2023. Further analysis and consideration of other financial metrics would provide a more comprehensive view of the company's financial health and operational efficiency.