Ametek Inc (AME)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,464,710 | 4,160,290 | 4,005,260 | 3,633,900 | 2,996,520 |
| Inventory | US$ in thousands | 1,021,710 | 1,132,470 | 1,044,280 | 769,175 | 559,171 |
| Inventory turnover | 4.37 | 3.67 | 3.84 | 4.72 | 5.36 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,464,710K ÷ $1,021,710K
= 4.37
The inventory turnover ratio for Ametek Inc has shown a general downward trend over the past five years, decreasing from 5.36 in December 2020 to 4.37 in December 2024. This indicates that the company is holding onto its inventory for a longer period before selling it. A lower inventory turnover ratio may suggest overstocking, inefficiencies in inventory management, or slowing sales. It is important for Ametek Inc to closely monitor its inventory levels and implement strategies to improve inventory turnover efficiency to optimize working capital utilization and minimize carrying costs associated with excess inventory.
Peer comparison
Dec 31, 2024