Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (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).
The analysis of the quarterly financial ratios reveals distinct trends over the observed periods for net fixed asset turnover, total asset turnover, and equity turnover.
- Net Fixed Asset Turnover
- This ratio shows a general upward trend from early 2020 through late 2022, increasing from approximately 8.27 to a peak of around 10.64. This indicates improving efficiency in utilizing fixed assets to generate sales over this timeframe. However, starting in early 2023, a gradual decline is evident, with values decreasing to approximately 9.79 by the first quarter of 2024. Despite this reduction, turnover remains higher compared to the initial periods, suggesting that although asset utilization efficiency has eased, it is still maintained at elevated levels relative to previous years.
- Total Asset Turnover
- This ratio follows a generally increasing pattern from 0.67 in early 2020 to a peak of 0.82 in late 2022, implying overall enhanced efficiency in using total assets to generate revenue. After reaching this peak, the ratio stabilizes, maintaining values close to 0.82 through mid-2023 before experiencing a slight decrease to 0.77 in early 2024. The overall trend reflects a positive improvement in asset utilization with some recent moderation.
- Equity Turnover
- In contrast to the other two turnover ratios, equity turnover shows a declining trend over the observed period. Starting from 1.85 in the first quarter of 2020, the ratio gradually decreases to approximately 1.48 by the first quarter of 2024. This steady reduction suggests a decrease in the ability to generate sales from shareholders' equity, indicating either an increase in equity base or a relatively slower growth in sales compared to equity growth during these years.
Overall, the data indicates effective utilization of fixed and total assets, particularly from 2020 through 2022, followed by some easing in efficiency ratios in 2023 and early 2024. Meanwhile, equity turnover experienced a gradual decline, reflecting changing dynamics in how equity is supporting sales generation. These patterns might signal shifts in investment structure or operational performance that could warrant further investigation.
Net Fixed Asset Turnover
Amphenol Corp., net fixed asset turnover 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 3,256,300) | 3,327,600) | 3,199,200) | 3,053,900) | 2,974,000) | 3,239,100) | 3,295,200) | 3,136,800) | 2,951,900) | 3,026,800) | 2,818,500) | 2,653,900) | 2,377,100) | 2,426,000) | 2,323,400) | 1,987,500) | 1,862,000) | ||||||
| Property, plant and equipment, less accumulated depreciation | 1,311,600) | 1,314,700) | 1,246,600) | 1,258,900) | 1,243,500) | 1,204,300) | 1,166,900) | 1,155,100) | 1,175,000) | 1,175,300) | 1,175,400) | 1,169,300) | 1,076,200) | 1,054,600) | 1,036,900) | 1,001,700) | 982,400) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 9.79 | 9.55 | 10.00 | 9.98 | 10.17 | 10.48 | 10.64 | 10.33 | 9.75 | 9.25 | 8.74 | 8.36 | 8.47 | 8.15 | 8.03 | 8.09 | 8.27 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 8.83 | 8.77 | 8.82 | 8.87 | 9.02 | 9.36 | 9.61 | 9.82 | 9.64 | 9.28 | 8.99 | 8.61 | 7.75 | — | — | — | — | ||||||
| Arista Networks Inc. | 62.08 | 57.69 | 54.54 | 51.74 | 49.98 | 46.11 | 40.75 | 38.14 | 36.13 | 37.49 | 36.78 | 81.23 | 75.84 | — | — | — | — | ||||||
| Cisco Systems Inc. | 28.96 | 27.34 | 26.82 | 27.07 | 26.52 | 25.82 | 25.21 | 24.09 | 22.69 | 21.31 | 20.64 | 20.13 | 19.93 | — | — | — | — | ||||||
| Dell Technologies Inc. | 15.51 | 16.48 | 18.00 | 18.53 | 18.99 | 18.69 | 14.34 | 14.47 | 14.48 | 14.65 | 14.52 | 14.34 | 15.11 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 25.34 | 24.54 | 22.67 | 22.98 | 20.69 | 18.17 | 16.40 | 14.88 | 13.47 | 12.95 | 12.74 | 12.77 | 13.65 | — | — | — | — | ||||||
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).
1 Q1 2024 Calculation
Net fixed asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Property, plant and equipment, less accumulated depreciation
= (3,256,300 + 3,327,600 + 3,199,200 + 3,053,900)
÷ 1,311,600 = 9.79
2 Click competitor name to see calculations.
The financial data reveals several notable trends across the specified periods. Net sales exhibit a general upward trajectory, with some fluctuations. From March 2020 to December 2021, sales increased steadily, reaching a peak in December 2021. Thereafter, sales experience some variability but maintain relatively high levels through March 2024, indicating sustained business activity despite occasional short-term declines.
Property, plant, and equipment (net of accumulated depreciation) show a consistent increase over the entire period. Beginning at 982,400 thousand USD in March 2020, the value rises steadily to a peak of approximately 1,314,700 thousand USD by December 2023, with a slight decline observed in the first quarter of 2024. This trend reflects ongoing investment in fixed assets, suggesting a strategy focused on capacity expansion or modernization.
The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate sales, has demonstrated improvement over time. Starting at 8.27 in March 2020, it experienced minor fluctuations but generally increased, peaking around the third quarter of 2022 at 10.64. After that peak, the ratio slightly declined but remained near the 10.0 mark, indicating relatively efficient utilization of fixed assets to support sales growth.
- Net Sales
- Steady growth from March 2020 until December 2021, reaching over 3 billion USD, followed by stable high levels with minor volatility through March 2024.
- Property, Plant, and Equipment (Net)
- Continuous increase over the period, suggesting capital investment and fixed asset accumulation, with values rising from under 1 billion USD to over 1.3 billion USD by late 2023.
- Net Fixed Asset Turnover
- Improved efficiency in asset usage, increasing from approximately 8.3 to over 10.5 during the period, with some moderation after the peak but maintaining strong asset productivity.
Total Asset Turnover
Amphenol Corp., total asset turnover 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 3,256,300) | 3,327,600) | 3,199,200) | 3,053,900) | 2,974,000) | 3,239,100) | 3,295,200) | 3,136,800) | 2,951,900) | 3,026,800) | 2,818,500) | 2,653,900) | 2,377,100) | 2,426,000) | 2,323,400) | 1,987,500) | 1,862,000) | ||||||
| Total assets | 16,722,500) | 16,526,400) | 15,759,000) | 15,237,900) | 15,381,500) | 15,326,200) | 15,097,900) | 14,986,100) | 14,873,600) | 14,678,400) | 14,926,100) | 14,559,100) | 13,133,500) | 12,327,300) | 11,753,900) | 11,203,900) | 12,077,700) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.77 | 0.76 | 0.79 | 0.82 | 0.82 | 0.82 | 0.82 | 0.80 | 0.77 | 0.74 | 0.69 | 0.67 | 0.69 | 0.70 | 0.71 | 0.72 | 0.67 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 1.09 | 1.09 | 1.15 | 1.16 | 1.12 | 1.12 | 1.15 | 1.10 | 0.99 | 1.04 | 1.05 | 0.97 | 0.83 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.58 | 0.59 | 0.62 | 0.64 | 0.64 | 0.65 | 0.64 | 0.60 | 0.52 | 0.51 | 0.51 | 0.50 | 0.50 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.59 | 0.56 | 0.56 | 0.55 | 0.56 | 0.55 | 0.56 | 0.55 | 0.53 | 0.51 | 0.52 | 0.50 | 0.51 | — | — | — | — | ||||||
| Dell Technologies Inc. | 1.15 | 1.14 | 1.24 | 1.20 | 1.18 | 1.09 | 0.73 | 0.79 | 0.78 | 0.76 | 0.77 | 0.75 | 0.77 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 1.80 | 1.94 | 2.06 | 2.16 | 1.82 | 1.62 | 1.51 | 1.56 | 1.58 | 1.59 | 1.69 | 1.72 | 1.82 | — | — | — | — | ||||||
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).
1 Q1 2024 Calculation
Total asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Total assets
= (3,256,300 + 3,327,600 + 3,199,200 + 3,053,900)
÷ 16,722,500 = 0.77
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends regarding sales, asset base, and efficiency in asset utilization over the examined periods.
- Net Sales Trend
- Net sales exhibited a generally upward trajectory from early 2020 through the end of 2023, increasing from approximately 1.86 billion US dollars in the first quarter of 2020 to around 3.33 billion US dollars by the fourth quarter of 2023. This represents a significant expansion in revenue over the four-year span, reflecting growth momentum. However, the sales figures showed some fluctuations, including a moderate dip in the first quarter of 2023, after which sales resumed a recovery pattern.
- Total Assets Trend
- Total assets grew steadily across the entire time frame, rising from roughly 12.08 billion US dollars at the start of 2020 to about 16.72 billion US dollars by the first quarter of 2024. The asset base expansion indicates ongoing investments in company resources, capacity, or acquisitions. The growth was consistent without major contractions, suggesting a stable approach to asset management and financing.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which reflects the efficiency of using assets to generate sales, generally improved from 0.67 in early 2020 to a peak of 0.82 during the 2022 and early 2023 quarters. This improving trend denotes enhanced operational efficiency or better asset utilization. However, a slight decline is observable towards the end of the dataset, with the ratio settling around 0.76 to 0.77 in early 2024. Despite this minor decrease, the ratio remains higher compared to the initial periods, signifying sustained efficiency improvements overall.
In summary, the financial data shows consistent growth in net sales and total assets, accompanied by improvements in asset turnover efficiency until recently. The company appears to be expanding its operations and managing its assets more effectively over the longer term, with only minor recent adjustments in efficiency metrics.
Equity Turnover
Amphenol Corp., equity turnover 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 3,256,300) | 3,327,600) | 3,199,200) | 3,053,900) | 2,974,000) | 3,239,100) | 3,295,200) | 3,136,800) | 2,951,900) | 3,026,800) | 2,818,500) | 2,653,900) | 2,377,100) | 2,426,000) | 2,323,400) | 1,987,500) | 1,862,000) | ||||||
| Stockholders’ equity attributable to Amphenol Corporation | 8,681,500) | 8,346,500) | 7,856,800) | 7,513,700) | 7,308,100) | 7,015,600) | 6,570,900) | 6,464,300) | 6,426,100) | 6,302,000) | 5,945,900) | 5,715,500) | 5,461,000) | 5,384,900) | 5,040,200) | 4,738,600) | 4,385,800) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | 1.48 | 1.50 | 1.59 | 1.67 | 1.73 | 1.80 | 1.89 | 1.85 | 1.78 | 1.73 | 1.73 | 1.71 | 1.67 | 1.60 | 1.65 | 1.71 | 1.85 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | 5.21 | 6.17 | 6.37 | 6.20 | 6.83 | 7.78 | 6.67 | 5.73 | 5.26 | 5.80 | 5.40 | 4.70 | 4.44 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.77 | 0.81 | 0.86 | 0.90 | 0.91 | 0.90 | 0.90 | 0.87 | 0.76 | 0.74 | 0.72 | 0.71 | 0.71 | — | — | — | — | ||||||
| Cisco Systems Inc. | 1.28 | 1.29 | 1.30 | 1.28 | 1.30 | 1.30 | 1.28 | 1.31 | 1.19 | 1.21 | 1.21 | 1.23 | 1.26 | — | — | — | — | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | 11.09 | 19.97 | 27.22 | 38.01 | 104.35 | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 3.41 | 3.61 | 3.72 | 3.65 | 3.70 | 3.64 | 3.63 | 3.51 | 3.38 | 3.25 | 3.21 | 3.06 | 3.08 | — | — | — | — | ||||||
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).
1 Q1 2024 Calculation
Equity turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Stockholders’ equity attributable to Amphenol Corporation
= (3,256,300 + 3,327,600 + 3,199,200 + 3,053,900)
÷ 8,681,500 = 1.48
2 Click competitor name to see calculations.
The financial data reveals several trends in net sales, stockholders’ equity attributable to Amphenol Corporation, and equity turnover over the examined periods.
- Net Sales
- There is an overall upward trajectory in net sales from March 31, 2020, through December 31, 2023, with values increasing from approximately $1.86 billion to over $3.32 billion. This represents substantial growth over the span of nearly four years. Although there are minor fluctuations within this period, notably some dips in the early 2023 quarters, the general pattern displays a consistent increase. The peak sales figure is observed in the fourth quarter of 2023, reaching approximately $3.33 billion, indicating strong sales momentum towards the end of the period.
- Stockholders’ Equity Attributable to Amphenol Corporation
- Stockholders’ equity consistently increased throughout the reported periods, moving from about $4.39 billion at the start of 2020 to approximately $8.68 billion by March 31, 2024. The growth in equity appears steady with occasional incremental accelerations, particularly noticeable from mid-2022 onward. This rising equity trend suggests sustained capital accumulation and possibly retained earnings growth, reflecting robust underlying corporate financial health and strengthening shareholder value.
- Equity Turnover Ratio
- The equity turnover ratio exhibits a declining trend over the period. Starting at 1.85 in early 2020, the ratio experiences a gradual reduction to 1.48 by the first quarter of 2024. The ratio fluctuates mildly but maintains a generally downward direction. A declining equity turnover ratio, despite increasing sales and equity, may indicate that sales growth is not keeping pace proportionally with the growth in equity. This could reflect changes in asset utilization efficiency or shifts in capital structure dynamics.
In summary, the company has demonstrated consistent growth in both net sales and stockholders’ equity, underscoring a positive expansion phase. Conversely, the declining equity turnover ratio suggests potential areas for efficiency evaluation, as the rise in equity has outpaced sales growth in relative terms. This combination of trends points to a solid financial foundation with opportunities to optimize asset use to maintain or improve revenue generation relative to equity levels.