Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Liquidity Ratios (Summary)
Amphenol Corp., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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).
- Current Ratio
- The current ratio exhibited an upward trend from 1.97 in 2019 to a peak of 2.43 in 2021, indicating an improvement in the company's ability to cover short-term liabilities with its current assets. However, this ratio slightly decreased to 2.42 in 2022 and further declined to 2.17 in 2023, suggesting a modest reduction in liquidity during the last two years, though it remains above the 2019 level.
- Quick Ratio
- The quick ratio showed a consistent increase from 1.24 in 2019 to 1.6 in 2020, reflecting an enhanced capacity to meet short-term obligations with liquid assets excluding inventory. Following this peak, the ratio slightly decreased to 1.51 in 2021, remained stable at 1.52 in 2022, and then declined to 1.36 in 2023. This pattern points to a generally strong liquidity position but a slight easing in the most recent year.
- Cash Ratio
- The cash ratio improved significantly from 0.43 in 2019 to 0.75 in 2020, highlighting a substantial increase in cash and cash equivalents relative to current liabilities. Subsequently, the ratio declined to 0.51 in 2021 and maintained a relatively stable level around 0.53-0.54 in 2022 and 2023. Despite the reduction from the 2020 peak, the cash ratio indicates a moderate level of immediate liquidity in recent years.
Current Ratio
Amphenol Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Current Ratio, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Current Ratio, Industry | ||||||
| Information Technology | ||||||
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
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current assets
- Current assets demonstrated a consistent upward trend over the analyzed period. Starting at 4,211,200 thousand US dollars as of December 31, 2019, the value increased annually, reaching 6,835,300 thousand US dollars by December 31, 2023. This represents a significant growth that indicates an increasing level of short-term resources available to the company.
- Current liabilities
- Current liabilities also increased steadily throughout the period. From 2,132,700 thousand US dollars at the end of 2019, the liabilities rose to 3,152,700 thousand US dollars by the end of 2023. This denotes a rise in the company's short-term obligations, which is important to consider when evaluating liquidity.
- Current ratio
- The current ratio exhibited a generally strong position, consistently above 1.9, indicating that the company maintained sufficient current assets to cover current liabilities each year. The ratio increased from 1.97 in 2019 to a peak of 2.43 in 2021, suggesting an improving liquidity position during this period. However, a slight decline was observed afterward, decreasing to 2.17 in 2023. Despite this decrease, the ratio remains well above 1, signaling ongoing solid liquidity capacity.
Quick Ratio
Amphenol Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Accounts receivable, less allowance for doubtful accounts | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Quick Ratio, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Quick Ratio, Industry | ||||||
| Information Technology | ||||||
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
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets showed a consistent increase over the five-year period. Starting at approximately 2.65 billion USD in 2019, the amount rose significantly to about 4.28 billion USD by the end of 2023. This trend indicates a strengthening in the company's liquid asset base, suggesting improved short-term financial flexibility and an enhanced ability to cover immediate obligations without relying on inventory.
- Current Liabilities
- Current liabilities also increased steadily over the same period, rising from approximately 2.13 billion USD in 2019 to around 3.15 billion USD in 2023. While this reflects a growth in short-term obligations, the increase was less steep relative to the growth in quick assets during most years. However, the jump in liabilities in 2023 is notably large compared to previous years, which could imply increased short-term debt or operational payables.
- Quick Ratio
- The quick ratio, representing the relationship between quick assets and current liabilities, improved from 1.24 in 2019 to a peak of 1.60 in 2020, indicating a stronger liquidity position that year. It then declined slightly in subsequent years to around 1.36 by 2023. Despite this slight decrease, the ratio remained well above 1.0 throughout the period, suggesting that the company maintained sufficient liquid assets to cover current liabilities. The downward trend since 2020 implies a relative increase in current liabilities compared to quick assets, warranting attention to short-term liquidity management going forward.
Cash Ratio
Amphenol Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Cash Ratio, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Cash Ratio, Industry | ||||||
| Information Technology | ||||||
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
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibited significant volatility over the five-year period. Starting at approximately 909 million in 2019, there was a substantial increase in 2020, reaching about 1.74 billion. This peak was followed by a notable decline in 2021, lowering to around 1.24 billion. Subsequently, the cash assets increased steadily in 2022 and 2023, ending at approximately 1.66 billion. Overall, the trend reflects considerable fluctuations with a general upward movement after 2021.
- Current Liabilities
- Current liabilities showed a consistent upward trend throughout the period analyzed. Beginning at about 2.13 billion in 2019, liabilities increased each year, reaching around 3.15 billion by the end of 2023. The growth appears to be steady and incremental, indicating a rising obligation level relative to the company's short-term debts.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover current liabilities with cash and cash equivalents, demonstrated variability. It started at 0.43 in 2019, increased significantly to 0.75 in 2020, which suggests improved liquidity in that year. However, the ratio declined to 0.51 in 2021 and then showed minor improvements stabilizing around 0.54 in 2022 and slightly decreasing to 0.53 in 2023. This trend implies that despite fluctuations, the company's liquidity position relative to its current liabilities weakened after 2020 and remained relatively stable but below the peak.