Ametek Inc (AME)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	6,941,180	6,596,950	6,150,530	5,546,510	4,540,030
Total current assets	US$ in thousands	2,603,030	2,824,670	2,528,060	2,128,760	2,522,470
Total current liabilities	US$ in thousands	2,098,590	2,882,570	1,564,200	1,563,310	1,075,920
Working capital turnover		13.76	—	6.38	9.81	3.14

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,941,180K ÷ ($2,603,030K – $2,098,590K)
= 13.76

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. Looking at Ametek Inc's working capital turnover over the past five years, we observe a fluctuating trend.

In December 2020, the working capital turnover ratio was 3.14, indicating that for every dollar of working capital, the company generated $3.14 in sales. This suggests a moderate efficiency in working capital management.

By December 2021, the ratio significantly improved to 9.81, reflecting a substantial increase in sales relative to working capital. This sharp improvement implies that Ametek Inc became more efficient in utilizing its working capital to drive revenue generation.

In December 2022, the ratio decreased to 6.38, albeit still at a relatively high level compared to the base year. This indicates a slight decline in efficiency in working capital management compared to the previous year but remains above the initial level in 2020.

Regrettably, no data is available for December 2023, making it challenging to assess the company's performance for that period.

By December 2024, the working capital turnover ratio surged to 13.76, signifying a significant improvement in efficiency compared to the previous years. This suggests that Ametek Inc was able to generate $13.76 in sales for every dollar of working capital invested, indicating robust management of working capital resources.

Overall, the working capital turnover ratio for Ametek Inc demonstrates variations across the years, with notable improvements in some periods, indicating shifts in how effectively the company is utilizing its working capital to drive sales.