Ametek Inc (AME)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	4,464,700	4,463,700	4,391,870	4,334,640	4,212,480	4,160,290	4,143,970	4,078,955	4,005,268	3,924,002	3,868,804	3,793,341	3,633,900	3,421,474	3,204,777	2,961,260	2,996,515	3,084,722	3,175,279	3,344,237
Inventory	US$ in thousands	1,021,710	1,084,620	1,101,720	1,127,330	1,132,470	1,087,580	1,107,820	1,117,050	1,044,280	1,025,130	966,609	866,472	769,175	738,688	711,620	604,321	559,171	584,753	621,518	654,298
Inventory turnover		4.37	4.12	3.99	3.85	3.72	3.83	3.74	3.65	3.84	3.83	4.00	4.38	4.72	4.63	4.50	4.90	5.36	5.28	5.11	5.11

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,464,700K ÷ $1,021,710K
= 4.37

Ametek Inc's inventory turnover has shown a declining trend over the past few years. It decreased from 5.11 in March 2020 to 3.72 in December 2023, indicating that the company is turning over its inventory less frequently. This could be a sign of inefficiency in managing inventory levels or challenges in selling products in a timely manner.

However, there was a slight uptick in inventory turnover from December 2023 to December 2024, where it increased to 4.37. This could suggest some improvement in managing inventory or increased sales during that period.

Overall, it is crucial for Ametek Inc to closely monitor its inventory turnover ratio and take appropriate actions to ensure optimal inventory management and maximize operational efficiency. High inventory turnover ratios are generally favorable as they indicate that the company is efficiently managing its inventory levels.