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.
Peer comparison
Dec 31, 2023
Company name
Symbol
Inventory turnover
Ametek Inc
AME
4.62
Cognex Corporation
CGNX
3.57
Danaher Corporation
DHR
7.23
Fortive Corp
FTV
9.13
Keysight Technologies Inc
KEYS
3.39
Mesa Laboratories Inc
MLAB
2.54
MKS Instruments Inc
MKSI
5.04
Roper Technologies Inc. Common Stock
ROP
15.77
Sensata Technologies Holding NV
ST
3.91