Ametek Inc (AME)

Working capital 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
Total current assets US$ in thousands 2,824,670 3,118,700 2,899,560 2,665,940 2,528,060 2,432,570 2,411,610 2,272,820 2,128,760 2,061,820 2,042,080 2,573,490 2,522,470 2,643,020 2,517,140 2,774,490 2,025,770 2,272,180 2,127,150 1,924,640
Total current liabilities US$ in thousands 2,882,570 1,673,720 1,341,190 1,452,670 1,564,200 1,591,380 1,633,030 1,590,740 1,563,310 1,633,830 1,857,630 1,138,460 1,075,920 1,403,490 1,017,450 1,477,670 1,425,860 1,110,520 978,558 1,007,230
Working capital turnover — 4.44 4.07 5.11 6.29 7.07 7.50 8.37 9.67 12.06 26.28 3.12 3.18 3.81 3.25 3.97 8.49 4.36 4.33 5.34

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,515,160K ÷ ($2,824,670K – $2,882,570K)
= —

The working capital turnover ratio for Ametek Inc has shown a decreasing trend over the past eight quarters. In Q1 2022, the ratio was at its highest at 8.49, indicating that the company generated $8.49 of revenue for every dollar of working capital invested. However, since then, the ratio has been declining steadily.

The ratio decreased to 7.60 in Q2 2022 and continued its downward trend in subsequent quarters, reaching 4.49 in Q3 2023. This suggests that the company's efficiency in utilizing its working capital to generate revenue has gradually decreased.

It is worth noting that a higher working capital turnover ratio is generally preferred as it indicates that the company is effectively managing its working capital to support its operations. A declining ratio may signal inefficiencies in the utilization of working capital and could potentially impact the company's liquidity and profitability in the long run.

Further analysis and context regarding the company's operational and financial performance would be needed to fully understand the implications of the declining working capital turnover ratio for Ametek Inc.