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.