Amphenol Corporation (APH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,317,000 | 1,475,000 | 1,373,100 | 1,197,100 | 1,702,000 |
| Short-term investments | US$ in thousands | 18,400 | 185,200 | 61,100 | 44,300 | 36,100 |
| Receivables | US$ in thousands | 3,287,900 | 2,618,400 | 2,631,300 | 2,454,800 | 1,951,600 |
| Total current liabilities | US$ in thousands | 4,083,800 | 3,152,700 | 2,676,100 | 2,447,100 | 2,304,300 |
| Quick ratio | 1.62 | 1.36 | 1.52 | 1.51 | 1.60 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,317,000K
+ $18,400K
+ $3,287,900K)
÷ $4,083,800K
= 1.62
The quick ratio measures Amphenol Corporation's ability to cover its short-term obligations with its most liquid assets. Over the years, the company's quick ratio has fluctuated but generally remained healthy, indicating a strong ability to meet its short-term liabilities.
In 2020, the quick ratio stood at 1.60, demonstrating a comfortable position as the company had $1.60 in liquid assets available for every $1 of current liabilities. However, in 2021, the ratio decreased slightly to 1.51, possibly indicating a small decrease in liquidity relative to its short-term obligations.
Despite the slight dip in 2021, the quick ratio showed improvement in the following years. By the end of 2022, the ratio had increased to 1.52, suggesting a better ability to cover short-term liabilities. In 2023, the ratio declined to 1.36, potentially indicating a slight decrease in liquidity compared to the previous year.
Notably, in 2024, the quick ratio significantly improved to 1.62, reaching its highest level in the provided data. This increase suggests that Amphenol Corporation strengthened its liquidity position by having $1.62 in liquid assets for every $1 of short-term liabilities, showcasing a positive development in its financial health.
Overall, the fluctuations in Amphenol Corporation's quick ratio reflect varying levels of liquidity over the years, with the company generally maintaining a satisfactory position to meet its short-term obligations.