Ametek Inc (AME)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,515,160	6,070,930	5,472,480	4,594,990	5,070,080
Property, plant and equipment	US$ in thousands	891,293	635,641	617,138	526,530	548,908
Fixed asset turnover		7.31	9.55	8.87	8.73	9.24

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,515,160K ÷ $891,293K
= 7.31

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. It is calculated by dividing net sales by average fixed assets. In the case of Ametek Inc, the trend in fixed asset turnover is fluctuating over the past five years.

In 2023, the fixed asset turnover ratio was 7.40, showing a decrease from the previous year's ratio of 9.68. This decline indicates that the company generated less revenue for each dollar invested in fixed assets in 2023 compared to 2022. Despite the decrease, Ametek Inc still managed to generate a significant amount of sales relative to its fixed assets.

Looking at the trend over the past five years, the fixed asset turnover ratio has shown variability, with values ranging from 7.40 to 9.68. This indicates that the company has been able to effectively utilize its fixed assets to generate revenue, although there have been fluctuations in this efficiency over time.

Overall, while the fixed asset turnover ratio for Ametek Inc has shown some inconsistency, it suggests that the company has been relatively efficient in generating sales from its fixed assets. It would be important for investors and analysts to further investigate the factors behind the fluctuations in order to gain a deeper understanding of the company's operational performance and resource utilization.