Amphenol Corporation (APH)

Liquidity ratios

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
Current ratio 2.37 1.99 2.02 2.06 2.17 2.33 2.33 2.64 2.42 2.38 2.45 2.55 2.43 2.40 2.17 2.43 2.38 2.27 2.59 2.54
Quick ratio 1.62 1.21 1.20 1.30 1.36 1.48 1.46 1.61 1.52 1.47 1.51 1.55 1.51 1.22 1.11 1.68 1.60 1.51 1.66 1.81
Cash ratio 0.82 0.41 0.38 0.57 0.53 0.60 0.55 0.62 0.54 0.47 0.52 0.54 0.51 0.45 0.41 0.93 0.75 0.66 0.74 1.10

Amphenol Corporation's liquidity ratios have demonstrated consistency and strength over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has remained above 2 throughout the period under review, indicating healthy liquidity levels.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, has also shown resilience. Despite some fluctuations, the quick ratio generally remained above 1, suggesting Amphenol has an adequate level of liquid assets to meet its short-term obligations without relying heavily on inventory.

Lastly, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has exhibited a similar trend of stability. While lower than the current and quick ratios, the cash ratio has generally been above 0.5, indicating that Amphenol maintains a reasonable level of cash reserves to meet its short-term obligations.

Overall, the liquidity ratios suggest that Amphenol Corporation is in a strong financial position with ample liquidity to support its operations and meet its short-term financial commitments.

See also:

Amphenol Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle (CCC) of Amphenol Corporation has shown fluctuations over the past few years. In the most recent period, as of December 31, 2024, the CCC stood at 105.13 days. This indicates the time it takes for the company to convert its investments in inventory into cash flows from sales, then finally back into cash.

Analyzing the trend, we observe that the CCC increased from 102.38 days as of March 31, 2020, to its peak at 113.64 days on June 30, 2024. Subsequently, there was a decrease to 105.13 days by the end of December 31, 2024.

A higher CCC suggests that the company takes longer to collect cash from sales and convert inventory into sales, which may indicate inefficiencies in its working capital management. Conversely, a lower CCC may indicate more efficient operations, showing faster conversion of inventory to sales and collection of cash.

Overall, monitoring the CCC is important for understanding the efficiency of Amphenol Corporation's working capital management and its ability to generate cash flow from its operations.