Analysis of Liquidity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Current Ratio
- The current ratio exhibited moderate fluctuations over the analyzed period. Starting at 2.5 in March 2019, the ratio declined steadily until the end of 2019, reaching a low of 1.97. It then increased significantly in the first half of 2020, peaking at 2.59 in June 2020. Subsequently, the ratio mostly oscillated around the 2.3 to 2.6 range, with a gradual declining trend towards early 2024, ending at 2.06. This pattern indicates variability in liquidity management, though the company consistently maintained a current ratio above 1.9, suggesting a reasonable ability to cover short-term liabilities.
- Quick Ratio
- The quick ratio followed a broadly similar trend to the current ratio but remained consistently lower, as expected given its exclusion of inventory. It declined from 1.61 in March 2019 to a low of 1.11 in June 2021, indicating a reduced buffer of highly liquid assets relative to current liabilities during this period. After mid-2021, the quick ratio recovered, peaking again near 1.6 in the first quarter of 2023 before settling down to 1.3 by March 2024. The volatility suggests periods of varying liquidity quality, but the ratio remained above 1.1, implying moderate short-term liquidity strength.
- Cash Ratio
- The cash ratio showed the greatest variability among the liquidity metrics. Starting at 0.6 in March 2019, it dipped to 0.43 by year-end 2019, reflecting lower cash reserves relative to current liabilities. A notable spike occurred in March 2020 when the ratio jumped to 1.1, more than doubling from the previous quarter, likely indicating a significant increase in cash or cash equivalents early in the pandemic period. Thereafter, the ratio stabilized mostly between 0.4 and 0.6, with minor fluctuations up to early 2024, ending at 0.57. This pattern suggests occasional shifts in cash holdings but generally a conservative cushion of cash or equivalents to meet immediate obligations.
- Overall Liquidity Analysis
- Across all three ratios, liquidity exhibited cyclical tendencies with improvements and declines aligning somewhat with economic conditions and internal cash management policies. The marked increase in the cash ratio in early 2020 may reflect precautionary liquidity preservation. Despite fluctuations, all ratios maintained levels indicative of sound short-term financial health, with no periods where liquidity ratios fell to dangerously low levels.
Current Ratio
Amphenol Corp., current ratio calculation (quarterly data)
| Mar 31, 2024 | 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 | ||||||||
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| 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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Over the analyzed periods, current assets demonstrated an overall upward trend despite some fluctuations. Starting at approximately 4,127,500 thousand USD in the first quarter of 2019, the value generally increased, notably rising above 5.5 million USD in early 2020. Though there was a temporary decline in mid-2020, it rebounded and continued to grow, reaching over 7 million USD by the first quarter of 2024. These movements imply a strengthening liquidity position over time, with current assets growing at a steady pace, particularly after 2021.
- Current Liabilities
- Current liabilities exhibited a trend of gradual increase from around 1,649,200 thousand USD in early 2019 to approximately 3,423,100 thousand USD by the first quarter of 2024. The values showed periodic fluctuations, with some quarters, such as the second quarter of 2021, witnessing sharper increases. Despite these variations, the general upward movement indicates rising short-term obligations alongside asset growth.
- Current Ratio
- The current ratio fluctuated within a relatively narrow band, beginning at 2.5 in the first quarter of 2019 and declining to near 2.0 by the end of the same year. It then improved significantly during the first half of 2020, exceeding 2.5, before stabilizing mostly between 2.1 and 2.6 in subsequent quarters. Towards the end of the data range, the current ratio trended downward again, reaching approximately 2.06 by the first quarter of 2024. This suggests that, while the company has generally maintained a strong liquidity buffer above the threshold ratio of 2.0, there has been a slightly weakening trend in this liquidity measure in the most recent quarters.
- Summary
- The financial data reflects a company with increasing levels of current assets, growing current liabilities, and a generally healthy liquidity position as indicated by the current ratio. The rise in current assets outpaces the increase in current liabilities, maintaining a current ratio consistently above 2.0, which typically signifies sufficient short-term financial strength. However, the recent decline in the current ratio suggests a cautious approach should be maintained to monitor liquidity trends moving forward.
Quick Ratio
Amphenol Corp., quick ratio calculation (quarterly data)
| Mar 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in liquidity and short-term financial health over the observed periods.
- Total Quick Assets
- Total quick assets demonstrated variability but generally increased over the five-year timeline. Starting around 2,649,500 thousand USD in the first quarter of 2019, the value peaked notably in early 2020 reaching 3,924,100 thousand USD. After some fluctuations, a steady upward trend resumed from 2021 through 2024, reaching approximately 4,464,900 thousand USD by the first quarter of 2024. This indicates an overall enhancement in liquid asset holdings available to meet immediate liabilities.
- Current Liabilities
- Current liabilities also showed considerable changes throughout the period. The amount increased significantly from 1,649,200 thousand USD in early 2019 to a peak near 3,152,700 thousand USD by the end of 2023. There were intermittent decreases, such as mid-2020 and mid-2022, but the overall trajectory was upward, reflecting growing short-term obligations.
- Quick Ratio
- The quick ratio, an indicator of liquidity, fluctuated within a range of approximately 1.11 to 1.81 over the quarters. The ratio started strong at 1.61 in the first quarter of 2019, reached a peak of 1.81 in early 2020, then declined considerably to its lowest point of 1.11 in mid-2021. Post-2021, the quick ratio regained strength, peaking again at 1.61 in early 2023, but trended downward toward 1.30 by the first quarter of 2024. These movements suggest shifting liquidity positions, with periods of stronger coverage of current liabilities by liquid assets alternating with periods of tighter liquidity.
In summary, the company’s liquid assets progressively increased over the long term, despite some volatility. Concurrently, current liabilities also rose, but not always in tandem with liquid assets. The fluctuation of the quick ratio indicates varying liquidity conditions, with some quarters suggesting robust capacity to cover immediate obligations and others reflecting a more constrained position. By the latest period, the quick ratio remains above 1.0, denoting that liquid assets still exceed current liabilities, though the declining trend could warrant monitoring for future liquidity risk.
Cash Ratio
Amphenol Corp., cash ratio calculation (quarterly data)
| Mar 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibited a fluctuating pattern over the observed periods. Beginning at approximately $987.6 million in March 2019, the cash assets saw a significant jump in March 2020, reaching about $2.38 billion. Subsequently, cash balances trended downward in the middle quarters of 2020 and 2021, reaching levels somewhat comparable to the pre-pandemic period. From early 2022 onwards, cash assets demonstrated moderate volatility but generally increased, peaking near $1.96 billion by March 2024. This suggests the company managed to replenish and even exceed previous cash holdings after the initial surge in early 2020.
- Current Liabilities
- Current liabilities showed a generally increasing trend throughout the timeframe. Starting from approximately $1.65 billion in March 2019, liabilities increased steadily with some fluctuations, peaking at about $3.42 billion in March 2024. There are noticeable interim spikes in June 2021 and December 2023, indicating periods of elevated short-term obligations. The consistent growth in current liabilities over five years may reflect increased operational scale, rising short-term debt, or other obligations requiring near-term settlement.
- Cash Ratio
- The cash ratio, representing the ability to cover current liabilities using cash assets alone, showed considerable variability. Initially, the ratio was moderate at around 0.6 in early 2019, then declined to a low near 0.43 by December 2019. A sharp increase was observed in the first quarter of 2020, climbing to 1.1, coinciding with the surge in cash assets. From that peak, the ratio mostly ranged between 0.4 and 0.75, indicating a moderate coverage capacity relative to current liabilities. Throughout 2022 and early 2023, the ratio fluctuated between approximately 0.47 and 0.62, and ended at 0.57 by March 2024, signaling a stable but not strong liquidity position over current obligations.