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.
Peer comparison
Dec 31, 2023