Ametek Inc (AME)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	5,063,800	5,002,020	4,984,590	4,906,980	4,816,430	4,720,600	4,656,450	4,576,480	4,380,084	4,125,585	3,878,666	3,593,858	3,599,189	3,704,748	3,824,124	4,033,194	4,102,779	4,074,399	4,026,518	3,971,365
Payables	US$ in thousands	516,588	486,581	487,663	526,063	497,134	524,255	540,667	504,249	470,252	446,409	446,532	397,075	360,370	324,837	337,465	373,900	377,219	381,945	390,443	405,648
Payables turnover		9.80	10.28	10.22	9.33	9.69	9.00	8.61	9.08	9.31	9.24	8.69	9.05	9.99	11.40	11.33	10.79	10.88	10.67	10.31	9.79

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,063,800K ÷ $516,588K
= 9.80

Ametek Inc's payables turnover ratio measures how efficiently the company manages its trade payables by comparing the cost of goods sold to its average trade payables balance. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period.

From the data provided:
- The payables turnover ratio has been relatively stable over the past eight quarters, ranging from a low of 7.16 to a high of 8.55.
- The average payables turnover ratio for the period is approximately 8.05, indicating that on average, Ametek Inc pays its suppliers around 8 times per year.
- The slight fluctuations in the payables turnover ratio suggest that Ametek Inc has been maintaining consistent payment practices towards its suppliers in recent quarters.
- The higher payables turnover ratio signifies that Ametek Inc is efficiently managing its trade payables by paying its suppliers more frequently, which may help in maintaining good relationships with suppliers and ensuring a smooth supply chain.

Overall, based on the payables turnover ratio data, it appears that Ametek Inc has been effectively managing its trade payables, demonstrating a consistent and efficient approach to supplier payments over the analyzed period.