Ametek Inc (AME)
Total asset 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 |
| Total assets | US$ in thousands | 15,023,500 | 12,431,100 | 11,898,200 | 10,357,500 | 9,844,560 |
| Total asset turnover | 0.43 | 0.49 | 0.46 | 0.44 | 0.52 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,515,160K ÷ $15,023,500K
= 0.43
Ametek Inc's total asset turnover has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its assets to generate revenue. A lower ratio suggests that the company is not generating enough sales relative to its asset base, while a higher ratio indicates better asset utilization.
In 2023, the total asset turnover was 0.44, a decrease from the previous year's 0.49. This decline may signify a decrease in sales generated per dollar of total assets, potentially due to factors such as increased asset base without a proportional increase in revenue.
Comparing the total asset turnover over the five-year period, it is apparent that the ratio has ranged from 0.44 to 0.52. The variations in the ratio suggest that Ametek Inc's efficiency in asset utilization has experienced fluctuations over this time frame.
Further analysis of the company's operational performance and financial strategy is recommended to better understand the factors influencing the changes in total asset turnover and to assess the overall efficiency and profitability of Ametek Inc.
Peer comparison
Dec 31, 2023