Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Amphenol Corp., long-term (investment) activity ratios
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).
The data reveals distinct trends in various turnover ratios over the five-year period.
- Net fixed asset turnover
- This ratio shows an overall upward trend from 8.23 in 2019, dipping slightly to 8.15 in 2020 before increasing significantly to 10.48 in 2022. However, it declined somewhat to 9.55 in 2023, remaining above the initial years but below its peak in 2022.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- Similar to the net fixed asset turnover, this adjusted ratio follows a parallel pattern: a decrease from 6.88 to 6.72 between 2019 and 2020, followed by steady increases through 2022 up to 8.45, then a reduction to 7.77 in 2023. The inclusion of right-of-use assets results in consistently lower values compared to the traditional net fixed asset turnover metric.
- Total asset turnover
- The total asset turnover ratio demonstrates modest fluctuation within a narrow range, starting at 0.76 in 2019, declining to a low of 0.7 in 2020, then recovering to 0.82 in 2022 before slightly decreasing again to 0.76 in 2023. This suggests relatively stable asset utilization with minor variations likely influenced by operational or market factors.
- Equity turnover
- The equity turnover ratio shows a gradual decline from 1.82 in 2019 to 1.5 in 2023, with a trough at 1.6 in 2020. Despite a partial recovery to 1.8 in 2022, the decline by 2023 indicates a decrease in revenue generated per unit of equity over the period, which may reflect changes in capital structure or equity valuation dynamics.
Net Fixed Asset Turnover
Amphenol Corp., net fixed asset turnover 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) | ||||||
| Net sales | 12,554,700) | 12,623,000) | 10,876,300) | 8,598,900) | 8,225,400) | |
| Property, plant and equipment, net | 1,314,700) | 1,204,300) | 1,175,300) | 1,054,600) | 999,000) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 9.55 | 10.48 | 9.25 | 8.15 | 8.23 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Apple Inc. | 8.77 | 9.36 | 9.28 | 7.47 | 6.96 | |
| Arista Networks Inc. | 57.69 | 46.11 | 37.49 | 71.90 | — | |
| Cisco Systems Inc. | 27.34 | 25.82 | 21.31 | 20.10 | 18.61 | |
| Dell Technologies Inc. | 16.48 | 18.69 | 14.65 | 15.22 | — | |
| Super Micro Computer Inc. | 24.54 | 18.17 | 12.95 | 14.28 | 16.88 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | 10.60 | 11.15 | 10.63 | 9.26 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 3.78 | 4.44 | 4.74 | 4.57 | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 12,554,700 ÷ 1,314,700 = 9.55
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a consistent upward trend from 2019 through 2022, increasing from $8.23 billion to a peak of $12.62 billion. In 2023, net sales experienced a slight decline to approximately $12.55 billion, indicating a plateau or minor contraction after several years of growth.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment increased steadily over the five-year period, rising from $999 million in 2019 to $1.31 billion in 2023. This represents a continuous investment in fixed assets each year, reflecting potential capacity expansion or asset upgrades.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio demonstrates an overall increasing pattern from 8.23 in 2019 to a peak of 10.48 in 2022, indicating improved efficiency in utilizing fixed assets to generate sales. However, in 2023, this ratio decreased to 9.55, suggesting a slight reduction in asset productivity relative to sales in that year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Amphenol Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 12,554,700) | 12,623,000) | 10,876,300) | 8,598,900) | 8,225,400) | |
| Property, plant and equipment, net | 1,314,700) | 1,204,300) | 1,175,300) | 1,054,600) | 999,000) | |
| Operating lease right-of-use assets (included in Other long-term assets) | 301,500) | 289,500) | 244,900) | 224,400) | 196,700) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 1,616,200) | 1,493,800) | 1,420,200) | 1,279,000) | 1,195,700) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.77 | 8.45 | 7.66 | 6.72 | 6.88 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Apple Inc. | 7.05 | 7.51 | 7.39 | 6.06 | 6.96 | |
| Arista Networks Inc. | 37.21 | 29.52 | 20.50 | 21.16 | — | |
| Cisco Systems Inc. | 18.65 | 17.19 | 14.51 | 14.61 | 18.61 | |
| Dell Technologies Inc. | 14.75 | 16.10 | 11.02 | 11.76 | — | |
| Super Micro Computer Inc. | 23.02 | 16.78 | 12.07 | 12.96 | 16.88 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Technology Hardware & Equipment | 8.57 | 8.94 | 8.34 | 7.41 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.32 | 3.85 | 4.03 | 3.87 | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 12,554,700 ÷ 1,616,200 = 7.77
2 Click competitor name to see calculations.
- Net Sales
- There is a consistent upward trend in net sales from 2019 to 2022, increasing from 8,225,400 thousand USD in 2019 to 12,623,000 thousand USD in 2022. However, in 2023, net sales show a slight decline to 12,554,700 thousand USD, indicating a potential plateau or minor contraction after steady growth.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment, including operating lease right-of-use assets, has steadily increased each year from 1,195,700 thousand USD in 2019 to 1,616,200 thousand USD in 2023. This consistent growth suggests ongoing investment in fixed assets.
- Net Fixed Asset Turnover
- This ratio, which measures efficiency in using fixed assets to generate sales, fluctuates over the years. It starts at 6.88 in 2019, dips slightly to 6.72 in 2020, then rises significantly to a peak of 8.45 in 2022 before dropping to 7.77 in 2023. The peak in 2022 indicates enhanced utilization of fixed assets that year, though the slight decrease in 2023 may indicate a reduction in efficiency or changes in asset composition relative to sales.
Total Asset Turnover
Amphenol Corp., total asset turnover 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) | ||||||
| Net sales | 12,554,700) | 12,623,000) | 10,876,300) | 8,598,900) | 8,225,400) | |
| Total assets | 16,526,400) | 15,326,200) | 14,678,400) | 12,327,300) | 10,815,500) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.76 | 0.82 | 0.74 | 0.70 | 0.76 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Apple Inc. | 1.09 | 1.12 | 1.04 | 0.85 | 0.77 | |
| Arista Networks Inc. | 0.59 | 0.65 | 0.51 | 0.49 | — | |
| Cisco Systems Inc. | 0.56 | 0.55 | 0.51 | 0.52 | 0.53 | |
| Dell Technologies Inc. | 1.14 | 1.09 | 0.76 | 0.78 | — | |
| Super Micro Computer Inc. | 1.94 | 1.62 | 1.59 | 1.74 | 2.08 | |
| Total Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | 1.00 | 1.01 | 0.89 | 0.77 | — | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.61 | 0.65 | 0.62 | 0.58 | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 12,554,700 ÷ 16,526,400 = 0.76
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally increasing trend from 2019 to 2023. Starting at approximately $8.23 billion in 2019, the figure rose moderately to roughly $8.60 billion in 2020. A more pronounced increase occurred in 2021 and 2022, reaching about $10.88 billion and $12.62 billion respectively. However, in 2023, net sales experienced a slight decline to approximately $12.55 billion compared to the previous year, indicating a stabilization or minor downward adjustment after several years of growth.
- Total Assets
- Total assets consistently increased throughout the period under review. From $10.82 billion at the end of 2019, assets grew steadily each year, reaching $12.33 billion in 2020, $14.68 billion in 2021, and $15.33 billion in 2022. The upward trajectory continued into 2023, with total assets amounting to approximately $16.53 billion. This steady asset growth suggests ongoing investment and expansion over the five-year period.
- Total Asset Turnover
- Total asset turnover ratios fluctuated within a narrow range. Beginning at a ratio of 0.76 in 2019, the ratio dipped to 0.70 in 2020, reflecting potentially less efficient asset utilization during that year. It then recovered to 0.74 in 2021 and improved further to 0.82 in 2022, indicating enhanced efficiency in generating sales from assets. However, in 2023, this ratio declined again to 0.76, returning to the same level as in 2019, which may suggest a moderation in operational efficiency following previous gains.
- Overall Analysis
- The data reveals consistent growth in total assets and mostly increasing net sales over the analyzed period, coupled with variability in the asset turnover ratio. The combination of rising assets and generally growing sales points to expansion, though the variations in asset turnover suggest periods of fluctuating efficiency. The slight sales decline and asset turnover decrease in 2023 may indicate the beginning of a consolidation phase or challenges in maintaining previous growth momentum.
Equity Turnover
Amphenol Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 12,554,700) | 12,623,000) | 10,876,300) | 8,598,900) | 8,225,400) | |
| Stockholders’ equity attributable to Amphenol Corporation | 8,346,500) | 7,015,600) | 6,302,000) | 5,384,900) | 4,530,300) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.50 | 1.80 | 1.73 | 1.60 | 1.82 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Apple Inc. | 6.17 | 7.78 | 5.80 | 4.20 | 2.88 | |
| Arista Networks Inc. | 0.81 | 0.90 | 0.74 | 0.70 | — | |
| Cisco Systems Inc. | 1.29 | 1.30 | 1.21 | 1.30 | 1.55 | |
| Dell Technologies Inc. | — | — | 38.01 | — | — | |
| Super Micro Computer Inc. | 3.61 | 3.64 | 3.25 | 3.13 | 3.72 | |
| Equity Turnover, Sector | ||||||
| Technology Hardware & Equipment | 4.94 | 5.86 | 4.61 | 3.97 | — | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.57 | 1.74 | 1.80 | 1.82 | — | |
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
Equity turnover = Net sales ÷ Stockholders’ equity attributable to Amphenol Corporation
= 12,554,700 ÷ 8,346,500 = 1.50
2 Click competitor name to see calculations.
The annual financial data reflects several notable trends in sales, equity, and efficiency ratios over the five-year period.
- Net Sales
- Net sales exhibit a generally upward trend from 2019 to 2022, increasing steadily from approximately 8.23 billion USD in 2019 to 12.62 billion USD in 2022. However, in 2023, there is a slight decline to about 12.55 billion USD, indicating a marginal contraction after consistent growth in prior years.
- Stockholders’ Equity Attributable to Amphenol Corporation
- Stockholders' equity shows consistent growth throughout the period, rising from roughly 4.53 billion USD in 2019 to 8.35 billion USD in 2023. This indicates a strengthening capital base with equity nearly doubling over five years, suggesting retained earnings accumulation or capital injections that bolster the company’s financial position.
- Equity Turnover Ratio
- The equity turnover ratio, a measure of how efficiently equity is used to generate sales, fluctuates during the period. It starts at 1.82 in 2019, dips to 1.6 in 2020, then rises to 1.73 in 2021 and 1.8 in 2022 before falling to 1.5 in 2023. The initial decrease in 2020 may reflect reduced sales efficiency possibly linked to broader market challenges, followed by recovery. The drop in 2023 suggests decreased efficiency in utilizing equity to produce sales despite the equity growth seen in that year.
Overall, the data suggest steady growth in net sales and equity with some variability in operational efficiency. The decline in net sales in 2023, coupled with the drop in equity turnover ratio, could indicate emerging challenges in converting increased equity into proportional sales growth, warranting closer attention for future performance monitoring.