Ametek Inc (AME)
Payables 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 |
Payables | US$ in thousands | 516,588 | 497,134 | 470,252 | 360,370 | 377,219 |
Payables turnover | 10.12 | 10.00 | 9.63 | 10.58 | 11.17 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,227,130K ÷ $516,588K
= 10.12
The payables turnover ratio for Ametek Inc has been relatively stable over the past five years, ranging from 7.73 to 8.94. This ratio measures how efficiently the company is managing its accounts payable by indicating the number of times the payables are paid off over a period.
A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could indicate strong cash flow management or good relationships with suppliers. On the other hand, a lower ratio may imply that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained supplier relationships.
In the case of Ametek Inc, the payables turnover ratio has been consistently above 8 over the past five years, indicating that the company is effectively managing its accounts payable by paying off its suppliers relatively quickly. This trend suggests that the company has been efficient in maintaining its supplier relationships and managing its cash flow effectively.
Overall, a stable and relatively high payables turnover ratio for Ametek Inc reflects positively on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023