Ametek Inc (AME)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,515,160 | 6,070,930 | 5,472,480 | 4,594,990 | 5,070,080 |
| Receivables | US$ in thousands | 1,012,930 | 919,335 | 829,213 | 597,472 | 744,760 |
| Receivables turnover | 6.43 | 6.60 | 6.60 | 7.69 | 6.81 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,515,160K ÷ $1,012,930K
= 6.43
The receivables turnover ratio of Ametek Inc has ranged from 6.51 to 7.60 over the past five years. A receivables turnover ratio indicates how efficiently a company is collecting its accounts receivable during a period.
A decreasing trend in the ratio might suggest that the company is taking longer to collect payment from its customers, which could be a sign of potential issues with credit policies or customer payment delays. On the other hand, an increasing trend may indicate an improvement in the company's credit management practices or more prompt payment from customers.
Overall, the fluctuation in Ametek Inc's receivables turnover ratio over the years could be a reflection of changing market conditions, company-specific strategies, or shifts in customer behavior. It is essential for stakeholders to monitor this ratio alongside other financial metrics to gain a comprehensive understanding of the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023