Ametek Inc (AME)

Short-term

Turnover ratios

Ametek Inc's inventory turnover ratio has shown a declining trend over the years, indicating that the company is taking longer to sell its inventory. This could be a concern as it may lead to increased holding costs and excess inventory levels.

The receivables turnover ratio data is not available, so it is difficult to evaluate the efficiency of the company in collecting payments from its customers. It would be beneficial to have this information to assess the effectiveness of the company's credit and collection policies.

Similarly, the payables turnover ratio data is also not provided, preventing an analysis of how efficiently the company is managing its payments to suppliers. This ratio is important as it reflects the company's ability to utilize trade credit effectively.

The working capital turnover ratio fluctuates significantly over the years, indicating varying levels of efficiency in utilizing working capital to generate sales. The sharp spikes in the ratio could point to potential inefficiencies or anomalies in the company's working capital management.

In conclusion, while the inventory turnover ratio shows a concerning trend, the absence of data for receivables turnover and payables turnover ratios limits a comprehensive analysis of Ametek Inc's activity ratios. The fluctuating nature of the working capital turnover ratio suggests the need for further examination of the company's working capital management practices.

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Average number of days

Based on the provided data for Ametek Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH has shown fluctuations over the years, with an increasing trend from 71.41 days on March 31, 2020, to 83.53 days on December 31, 2024. This indicates that the company's inventory turnover has been slowing down, potentially tying up more cash in inventory.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for any reporting period, suggesting that specific receivables management information is not provided in the dataset. Without this data, it is challenging to assess the efficiency of the company in collecting receivables from customers.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is also not available for any reporting period. This lack of information makes it difficult to evaluate the company's ability to manage its payables effectively and optimize its working capital cycle.

Overall, based on the provided data, it is evident that the focus is primarily on inventory management, as reflected in the fluctuations in the Days of Inventory on Hand. However, a more comprehensive analysis of other activity ratios, particularly DSO and payables turnover, would provide a more holistic view of Ametek Inc's efficiency in managing its operating cycle and working capital.

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Long-term

Ametek Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, provide insights into the efficiency of the company in utilizing its assets to generate sales revenue.

The Fixed Asset Turnover ratio has shown fluctuating trends over the years. It decreased from 9.49 in March 2020 to 6.34 in June 2021, indicating a decline in the company's ability to generate sales from its fixed assets. However, the ratio rebounded to 9.86 in March 2023, reflecting improved efficiency in utilizing fixed assets.

On the other hand, the Total Asset Turnover ratio remained relatively stable throughout the period, hovering around 0.44 to 0.50. This suggests that the company has been consistently effective in generating sales revenue relative to its total assets.

Overall, while the Fixed Asset Turnover ratio showcased more variability, the Total Asset Turnover ratio indicates a consistent performance in asset utilization for revenue generation by Ametek Inc.