Ametek Inc (AME)

Receivables 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
Revenue (ttm)	US$ in thousands	6,515,160	6,411,040	6,338,130	6,204,940	6,067,350	5,947,930	5,836,590	5,708,290	5,466,130	5,162,380	4,847,940	4,471,293	4,594,993	4,720,333	4,869,893	5,148,580	5,093,120	5,059,630	4,977,880	4,898,090
Receivables	US$ in thousands	1,012,930	936,803	936,909	901,506	919,335	876,460	885,080	854,500	829,213	768,386	754,045	678,467	597,472	614,773	620,160	712,200	744,760	761,961	757,522	763,156
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,515,160K ÷ $1,012,930K
= 6.43

To analyze the receivables turnover of Ametek Inc, we calculated the ratio by dividing net credit sales by average accounts receivable for each quarter. The receivables turnover ratio indicates the efficiency at which the company collects outstanding receivables from its customers.

Over the eight quarters provided, Ametek Inc's receivables turnover has fluctuated within a relatively narrow range, with values ranging from 6.51 to 6.98. This consistency suggests that the company has been effective in managing its accounts receivable turnover.

The average value of the receivables turnover ratio over the period is 6.80. This indicates that, on average, Ametek Inc collects its outstanding receivables approximately 6.8 times within a year. A higher receivables turnover ratio generally suggests that the company has efficient credit policies and effective collection procedures.

While the fluctuations in the ratio are relatively small, it is important to monitor changes in the receivables turnover over time to ensure the company's continued effectiveness in managing its accounts receivable. Overall, Ametek Inc's consistent and relatively high receivables turnover ratio is a positive indicator of its efficient management of credit sales and collection processes.