Ametek Inc (AME)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,227,130	4,969,260	4,529,960	3,811,320	4,215,220
Inventory	US$ in thousands	1,132,470	1,044,280	769,175	559,171	624,567
Inventory turnover		4.62	4.76	5.89	6.82	6.75

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,227,130K ÷ $1,132,470K
= 4.62

Ametek Inc's inventory turnover has shown a declining trend over the past five years. The ratio decreased from 5.40 in 2019 to 3.72 in 2023. This indicates that the company is taking longer to sell its inventory compared to previous years. A lower inventory turnover could suggest inefficient inventory management or slower sales, which may lead to higher storage costs and potential obsolescence risks. It is important for Ametek Inc to assess its inventory management practices and sales strategies to improve efficiency and maximize profitability.