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Stock Analysis on Net

Amphenol Corp. (NYSE:APH)

This company has been moved to the archive! The financial data has not been updated since April 26, 2024.

Common-Size Income Statement

Amphenol Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of sales -67.47 -68.09 -68.72 -69.02 -68.20
Gross profit 32.53% 31.91% 31.28% 30.98% 31.80%
Acquisition-related expenses -0.28 -0.17 -0.65 -0.13 -0.31
Selling, general and administrative expenses -11.87 -11.26 -11.27 -11.79 -11.81
Operating income 20.39% 20.48% 19.35% 19.05% 19.69%
Interest expense -1.11 -1.02 -1.06 -1.34 -1.43
Gain on bargain purchase acquisition 0.04 0.00 0.00 0.00 0.00
Loss on early extinguishment of debt 0.00 0.00 0.00 0.00 -0.17
Other income (expense), net 0.23 0.08 0.00 0.04 0.10
Income from continuing operations before income taxes 19.55% 19.55% 18.29% 17.75% 18.19%
Provision for income taxes -4.06 -4.36 -3.76 -3.64 -4.04
Net income from continuing operations 15.50% 15.18% 14.53% 14.11% 14.15%
Income from discontinued operations, net of income taxes 0.00 0.00 0.20 0.00 0.00
Net income 15.50% 15.18% 14.72% 14.11% 14.15%
Net income attributable to noncontrolling interests -0.14 -0.11 -0.10 -0.12 -0.11
Net income attributable to Amphenol Corporation 15.36% 15.07% 14.63% 13.99% 14.04%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

An analysis of the common-size income statement from 2019 to 2023 reveals a trajectory of expanding profitability and improved operational efficiency. The net income attributable to the corporation demonstrated a consistent upward trend, rising from 14.04% of net sales in 2019 to 15.36% by the end of 2023, indicating a successful conversion of revenue into shareholder profit over the five-year period.

Gross Profitability and Cost Management
Gross profit margins exhibited a recovery and growth pattern. After a slight contraction to 30.98% in 2020, the margin expanded steadily to reach 32.53% in 2023. This improvement is directly correlated with a reduction in the cost of sales, which decreased from 68.20% of net sales in 2019 to 67.47% in 2023, suggesting enhanced production efficiency or better pricing power.
Operational Expense Trends
Operating income remained resilient, fluctuating between 19.05% and 20.48%. Selling, general, and administrative (SG&A) expenses remained relatively stable, hovering around 11.2% to 11.8% of net sales. While SG&A showed slight optimization between 2021 and 2022, it returned to 11.87% in 2023. Acquisition-related expenses showed volatility, peaking at 0.65% in 2021, which reflects a non-linear approach to corporate expansion.
Financial and Non-Operating Items
Interest expenses as a percentage of net sales declined from 1.43% in 2019 to 1.11% in 2023, implying a reduction in the relative burden of debt servicing. Other income and expenses remained negligible, although a gain on bargain purchase acquisition contributed 0.04% to the total in 2023. The provision for income taxes remained consistent, generally ranging between 3.64% and 4.36% of net sales.
Bottom Line Performance
The net income from continuing operations showed a steady climb from 14.15% in 2019 to 15.50% in 2023. The impact of noncontrolling interests remained minimal and stable, ranging from 0.10% to 0.14% of net sales, ensuring that the vast majority of net earnings were attributable to the parent corporation.

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