Amphenol Corporation (APH)

Liquidity ratios

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
Current ratio 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 1.97 1.99 2.06 2.50
Quick ratio 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 1.24 1.26 1.31 1.61
Cash ratio 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 0.43 0.46 0.49 0.60

Amphenol Corp.'s liquidity ratios provide insight into its ability to meet short-term obligations and sustain operations. The current ratio, which measures the company's ability to cover current liabilities with current assets, has shown stability over the quarters, ranging from 2.17 to 2.64. This indicates that the company has a sufficient buffer of current assets to cover its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a consistent level of liquidity over the quarters, ranging from 1.48 to 1.77. This suggests that Amphenol Corp. has an adequate level of highly liquid assets to cover immediate liabilities without relying on selling inventory.

The cash ratio, the most conservative measure of liquidity that focuses solely on cash and cash equivalents, has shown a similar pattern of stability, ranging from 0.65 to 0.77. This indicates that the company maintains a moderate level of cash reserves relative to its current liabilities.

Overall, Amphenol Corp.'s liquidity ratios demonstrate a consistent and healthy liquidity position, with ample current assets to cover short-term obligations. The company appears to have a strong ability to meet its financial commitments and support ongoing business operations.

See also:

Amphenol Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle of Amphenol Corp. has shown relatively stable performance over the past eight quarters. The cycle ranged from 107.20 days to 112.03 days during this period.

On average, it takes Amphenol Corp. around 109.32 days to convert its investments in inventory and other resources into cash from sales. This indicates that the company's cash is tied up in its operations for an average of 109.32 days before being recovered through sales.

A shorter cash conversion cycle generally signifies a more efficient use of resources and quicker access to cash, while a longer cycle may suggest inefficiencies in inventory management or challenges in collecting receivables promptly.

Amphenol Corp. should monitor its cash conversion cycle closely to identify opportunities for streamlining operations, improving inventory turnover, and managing working capital more effectively. This analysis can help the company optimize its cash flow and enhance overall financial performance.