Ametek Inc (AME)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.47	4.60	4.50	4.39	4.61	4.60	4.82	5.28	5.69	5.59	5.45	5.95	6.44	6.34	6.15	6.16	6.57	6.53	6.35	6.20
Receivables turnover	6.43	6.84	6.76	6.88	6.60	6.79	6.59	6.68	6.59	6.72	6.43	6.59	7.69	7.68	7.85	7.23	6.84	6.64	6.57	6.42
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
Working capital turnover	—	4.44	4.07	5.11	6.29	7.07	7.50	8.37	9.67	12.06	26.28	3.12	3.18	3.81	3.25	3.97	8.49	4.36	4.33	5.34

Ametek Inc's inventory turnover ratio has been relatively stable over the past eight quarters, ranging from 3.65 to 3.84, indicating that the company is efficiently managing its inventory levels. The receivables turnover ratio has also shown consistency, with values between 6.51 and 6.98, suggesting that the company is collecting receivables in a timely manner.

The payables turnover ratio has fluctuated slightly, but generally remained between 7.16 and 8.55 over the same period. This indicates that the company is managing its trade payables effectively.

The working capital turnover ratio has shown an overall decreasing trend from 8.49 in Q1 2022 to 4.49 in Q3 2023. This suggests that the company's ability to generate sales from its working capital has declined over time, which may be a cause for concern as it indicates a potential decrease in operational efficiency.

In summary, while Ametek Inc has been maintaining efficient inventory and receivables turnover ratios, there might be a need to closely monitor the working capital turnover ratio to ensure sustained operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	81.63	79.36	81.12	83.09	79.14	79.26	75.77	69.11	64.10	65.35	66.97	61.38	56.71	57.61	59.32	59.21	55.56	55.87	57.48	58.87
Days of sales outstanding (DSO)	days	56.75	53.34	53.95	53.03	55.31	53.78	55.35	54.64	55.37	54.33	56.77	55.38	47.46	47.54	46.48	50.49	53.37	54.97	55.54	56.87
Number of days of payables	days	37.24	35.51	35.71	39.13	37.67	40.54	42.38	40.22	39.19	39.49	42.02	40.33	36.55	32.00	32.21	33.84	33.56	34.22	35.39	37.28

Ametek Inc's activity ratios indicate the efficiency of the company's operations in managing its inventory, collecting receivables, and paying suppliers.

1. Days of inventory on hand (DOH): The company takes an average of around 95 to 99 days to sell its inventory. A decreasing trend is observed from Q1 2022 to Q1 2023, suggesting better inventory management efficiency.

2. Days of sales outstanding (DSO): Ametek Inc takes an average of around 52 to 56 days to collect its accounts receivable. The trend shows a slight fluctuation over the quarters but remains relatively stable.

3. Number of days of payables: The company takes an average of around 42 to 48 days to pay its suppliers. A decreasing trend is observed from Q1 2022 to Q4 2023, indicating increasing efficiency in paying suppliers promptly.

In general, a lower DOH, DSO, and higher number of days of payables are favorable, as they suggest that the company is efficiently managing its working capital and operating cycle. By closely monitoring and potentially optimizing these activity ratios, Ametek Inc can enhance its cash flow and overall operational efficiency.

Long-term

	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
Fixed asset turnover	7.31	10.15	9.94	9.73	9.55	10.00	9.77	9.34	8.86	8.64	8.10	8.14	8.73	9.28	9.43	9.63	9.28	9.42	9.25	9.03
Total asset turnover	0.43	0.49	0.49	0.49	0.49	0.49	0.49	0.48	0.46	0.44	0.41	0.42	0.44	0.45	0.47	0.49	0.52	0.55	0.55	0.55

The fixed asset turnover ratio measures how efficiently a company generates sales from its investments in fixed assets. In the case of Ametek Inc, the fixed asset turnover ratio has been consistently high, ranging from 7.40 to 10.28 over the past eight quarters. This indicates that Ametek is effectively utilizing its fixed assets to generate sales revenue, with each dollar invested in fixed assets generating substantial sales.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets. Ametek's total asset turnover ratio has also been relatively stable, ranging from 0.44 to 0.50 over the same period. This suggests that the company is efficiently using its total assets to generate sales revenue, with each dollar invested in assets generating a consistent level of sales.

Overall, Ametek Inc's long-term activity ratios, particularly the fixed asset turnover and total asset turnover ratios, indicate that the company is effectively managing and utilizing its assets to drive sales growth and create value for its shareholders.