Amphenol Corp. (NYSE:APH)

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Area Asset Turnover: United States

Amphenol Corp.; United States; area asset turnover calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net sales	4,405,400)	4,155,200)	3,155,900)	2,494,000)	2,524,700)
Long-lived assets	442,600)	386,100)	362,100)	352,700)	355,000)
Area Activity Ratio
Area asset turnover¹	9.95	10.76	8.72	7.07	7.11

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).

¹ 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 4,405,400 ÷ 442,600 = 9.95

The financial performance within the United States geographic area is characterized by substantial revenue expansion and high asset efficiency between 2019 and 2023. Following a marginal contraction in net sales in 2020, a period of aggressive growth occurred, with sales increasing from 2.49 billion USD in 2020 to 4.41 billion USD by the end of 2023.

Net Sales Trends: Net sales exhibited a strong upward trajectory after 2020, with the most significant acceleration occurring between 2021 and 2022, during which revenue grew by approximately 32%. By the end of 2023, total net sales for the region had increased by approximately 74% compared to 2019 levels.
Long-lived Assets Analysis: The investment in long-lived assets remained relatively stable from 2019 through 2021, hovering around 350-360 million USD. However, a noticeable increase in asset acquisition began in 2022 and accelerated in 2023, with the asset base reaching 442.6 million USD, representing a 24% increase over 2021 figures.
Area Asset Turnover Efficiency: The asset turnover ratio demonstrated significant improvement, rising from 7.07 in 2020 to a peak of 10.76 in 2022. This indicates a period where revenue growth substantially outpaced asset growth, maximizing operational leverage. The slight decline to 9.95 in 2023 coincides with the accelerated increase in long-lived assets, suggesting a period of reinvestment to support further scaling.

Overall, the data reflects a transition from a phase of extreme asset optimization between 2021 and 2022 to a phase of capacity expansion in 2023. Despite the slight dip in the turnover ratio in the final year, the efficiency remains significantly higher than the baseline established in 2019 and 2020.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Area Asset Turnover: China

Amphenol Corp.; China; area asset turnover calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net sales	2,884,000)	3,265,000)	3,044,400)	2,597,500)	2,306,400)
Long-lived assets	455,500)	470,100)	451,700)	399,600)	343,100)
Area Activity Ratio
Area asset turnover¹	6.33	6.95	6.74	6.50	6.72

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).

¹ 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 2,884,000 ÷ 455,500 = 6.33

Financial performance in China from 2019 to 2023 is characterized by a period of growth and asset expansion through 2022, followed by a contraction in both revenue and efficiency in 2023.

Net Sales Trends: Revenue demonstrated a consistent upward trajectory between 2019 and 2022, increasing from 2,306.4 million US dollars to a peak of 3,265.0 million US dollars. This growth trend reversed in 2023, with net sales declining to 2,884.0 million US dollars, marking a significant decrease from the previous year's high.
Long-lived Asset Growth: The investment in long-lived assets grew steadily from 343.1 million US dollars in 2019 to 470.1 million US dollars in 2022, aligning with the growth in sales. In 2023, the asset base remained relatively stable, experiencing only a slight reduction to 455.5 million US dollars, indicating that the capital infrastructure remained largely intact despite the revenue downturn.
Area Asset Turnover Efficiency: The area asset turnover ratio remained relatively stable throughout the period, fluctuating between 6.33 and 6.95. Efficiency improved from a low of 6.50 in 2020 to a peak of 6.95 in 2022, suggesting an optimized use of assets to generate revenue. However, the ratio fell to 6.33 in 2023, the lowest level in the observed period. This decline is attributed to the reduction in net sales occurring while the long-lived asset base remained high, thereby lowering the overall asset utilization rate.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Area Asset Turnover: Other foreign locations

Amphenol Corp.; Other foreign locations; area asset turnover calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net sales	5,265,300)	5,202,800)	4,676,000)	3,507,400)	3,394,300)
Long-lived assets	718,100)	637,600)	606,400)	526,700)	497,600)
Area Activity Ratio
Area asset turnover¹	7.33	8.16	7.71	6.66	6.82

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).

¹ 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 5,265,300 ÷ 718,100 = 7.33

Between 2019 and 2023, net sales and long-lived assets in other foreign locations exhibited a general upward trajectory, although the rate of sales growth decelerated significantly in the final year of the period.

Net Sales Growth: Net sales increased from 3,394,300 thousand US dollars in 2019 to 5,265,300 thousand US dollars by 2023. The most substantial growth occurred between 2020 and 2021, with sales rising by approximately 33.5%. However, growth reached a plateau between 2022 and 2023, recording a marginal increase of approximately 1.2%.
Long-lived Asset Expansion: Long-lived assets showed a consistent year-over-year increase, growing from 497,600 thousand US dollars in 2019 to 718,100 thousand US dollars in 2023. This represents a total increase of approximately 44.3%, indicating steady capital investment in these foreign locations throughout the analyzed period.
Asset Turnover Efficiency: The area asset turnover ratio fluctuated over the five-year period, reaching a peak of 8.16 in 2022 before declining to 7.33 in 2023. While efficiency improved between 2020 and 2022 as sales growth outpaced asset accumulation, the decline in 2023 is attributable to a significant increase in long-lived assets—approximately 12.5%—occurring simultaneously with nearly flat sales growth, which resulted in lower asset utilization efficiency.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Amphenol Corp., net sales by geographic area

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
United States	4,405,400)	4,155,200)	3,155,900)	2,494,000)	2,524,700)
China	2,884,000)	3,265,000)	3,044,400)	2,597,500)	2,306,400)
Other foreign locations	5,265,300)	5,202,800)	4,676,000)	3,507,400)	3,394,300)
Total	12,554,700)	12,623,000)	10,876,300)	8,598,900)	8,225,400)

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).

Total net sales demonstrated a period of significant growth between 2019 and 2022, rising from $8.23 billion to a peak of $12.62 billion. This trajectory stabilized in 2023, with total revenue ending the year at $12.55 billion, representing a marginal year-over-year contraction of approximately 0.5%.

United States Market Performance: The U.S. market exhibited strong acceleration following 2020. Net sales grew from $2.49 billion in 2020 to $4.41 billion by the end of 2023. This represents a consistent upward trend, with the most significant year-over-year increase occurring between 2021 and 2022, where sales rose by approximately 31.6%.
China Market Trends: Sales within China showed a steady increase from 2019 through 2022, peaking at $3.27 billion. However, a notable reversal occurred in 2023, as net sales declined to $2.88 billion, marking a decrease of approximately 11.7% from the previous year's peak.
Other Foreign Locations: This segment remained the primary contributor to total net sales throughout the five-year period. A substantial expansion was observed in 2021, with sales increasing from $3.51 billion to $4.68 billion. The segment reached its highest value of $5.27 billion in 2023, maintaining a stable presence despite the fluctuations in other regions.
Geographic Revenue Distribution: A shift in the revenue mix is observable over the analysis period. The United States increased its share of total net sales from approximately 30.7% in 2019 to 35.1% in 2023. Conversely, China's contribution to total sales decreased from roughly 28% in 2019 to 23% in 2023, while Other Foreign Locations grew from 41.3% to 42% of total revenue.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Amphenol Corp., long-lived assets by geographic area

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
United States	442,600)	386,100)	362,100)	352,700)	355,000)
China	455,500)	470,100)	451,700)	399,600)	343,100)
Other foreign locations	718,100)	637,600)	606,400)	526,700)	497,600)
Total	1,616,200)	1,493,800)	1,420,200)	1,279,000)	1,195,700)

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).

Total long-lived assets exhibited a consistent upward trend between 2019 and 2023, increasing from US$ 1,195.7 million to US$ 1,616.2 million. This growth reflects a sustained expansion of the capital base across most geographic segments over the five-year period.

Aggregate Asset Growth: The total value of long-lived assets grew by approximately 35.2% from 2019 to 2023. Growth was steady year-over-year, with the largest absolute increase occurring between 2022 and 2023.
United States Asset Trends: Investment in the United States remained nearly flat between 2019 and 2020 but transitioned into a growth phase thereafter. A notable acceleration occurred in 2023, with assets rising to US$ 442.6 million, a 14.6% increase over the 2022 balance.
China Asset Trends: The asset base in China experienced significant expansion from 2019 to 2022, rising from US$ 343.1 million to a peak of US$ 470.1 million. This growth trend reversed in 2023, with a decline to US$ 455.5 million.
Other Foreign Locations Trends: This segment consistently represented the largest share of long-lived assets. It demonstrated uninterrupted growth throughout the period, increasing from US$ 497.6 million in 2019 to US$ 718.1 million in 2023, representing a total growth of 44.3%.
Geographic Distribution and Concentration: There is an observable shift in asset concentration toward diversified international markets. The proportion of total long-lived assets held in other foreign locations increased from 41.6% in 2019 to 44.4% in 2023, while the relative weight of assets in the United States slightly decreased from 29.7% to 27.4% over the same interval.

AI Ask an analyst for more