Ametek Inc (AME)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.37 | 3.67 | 3.84 | 4.72 | 5.36 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 13.76 | — | 6.38 | 9.81 | 3.14 |
Ametek Inc's inventory turnover ratio indicates a slight decrease in efficiency in managing its inventory over the years, from 5.36 in 2020 to 4.37 in 2024. This suggests that the company may be holding onto its inventory for longer periods, which could tie up capital and potentially increase carrying costs.
The lack of data provided for receivables turnover and payables turnover ratios limits our ability to assess the efficiency of Ametek Inc in managing its receivables and payables. Without this information, it is challenging to evaluate how quickly the company collects its receivables or pays its suppliers.
In terms of working capital turnover, Ametek Inc showed a significant increase in efficiency from 2020 to 2024, with the ratio jumping from 3.14 to 13.76. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital invested. This improvement suggests that Ametek Inc has been able to optimize its use of working capital to drive sales growth and operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 83.53 | 99.36 | 95.17 | 77.26 | 68.11 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the data provided for Ametek Inc's activity ratios, we can observe the following trends:
1. Days of Inventory on Hand (DOH)
- The days of inventory on hand have increased consistently from 68.11 days as of December 31, 2020, to 83.53 days as of December 31, 2024.
- This indicates that the company is holding inventory for a longer period, which could tie up capital and potentially lead to higher carrying costs or obsolete inventory.
2. Days of Sales Outstanding (DSO)
- The data does not provide information on the days of sales outstanding. Therefore, it is not possible to analyze the efficiency of the company in collecting its accounts receivable.
3. Number of Days of Payables
- Similarly, there is no data available for the number of days of payables. This makes it challenging to assess the company's payment practices and management of trade payables.
In conclusion, based on the available information, we see that Ametek Inc has experienced an increase in its days of inventory on hand over the years. However, without data on days of sales outstanding and number of days of payables, a comprehensive analysis of the company's overall operating efficiency and working capital management is limited.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.63 | 7.05 | 8.62 |
| Total asset turnover | 0.47 | 0.44 | 0.49 | 0.47 | 0.44 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenues. The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets.
For Ametek Inc, the fixed asset turnover ratio has shown a decreasing trend from 8.62 in 2020 to 7.05 in 2021, then improving to 7.63 in 2022. However, the data is unavailable for 2023 and 2024.
The total asset turnover ratio, on the other hand, measures the efficiency of a company in generating sales revenue from its total assets. A higher total asset turnover ratio indicates better asset utilization.
The total asset turnover ratio for Ametek Inc has shown a slight increase from 0.44 in 2020 to 0.47 in 2021 and 2024. It peaked in 2022 at 0.49 before slightly decreasing in 2023 to 0.44.
In conclusion, despite fluctuations in the ratios, Ametek Inc has generally maintained a decent level of efficiency in utilizing its fixed assets and total assets to generate sales revenue over the years analyzed.