Ametek Inc (AME)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 409,804 | 345,386 | 346,772 | 1,212,820 | 393,030 |
| Short-term investments | US$ in thousands | — | — | — | 292,625 | — |
| Total current liabilities | US$ in thousands | 2,882,570 | 1,564,200 | 1,563,310 | 1,075,920 | 1,425,860 |
| Cash ratio | 0.14 | 0.22 | 0.22 | 1.40 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($409,804K
+ $—K)
÷ $2,882,570K
= 0.14
The cash ratio of Ametek Inc has fluctuated over the past five years. The ratio was at its lowest point in 2023 at 0.24, indicating that the company had $0.24 of cash and cash equivalents for every $1 of current liabilities. This suggests a relatively lower liquidity position in that year compared to the previous years.
In 2022 and 2021, the cash ratio improved to 0.36 and 0.34 respectively, indicating an increase in the company's ability to cover its short-term liabilities with its cash reserves.
The cash ratio was significantly higher in 2020 at 1.27, signifying a strong liquidity position where the company had more than enough cash to cover its current liabilities. However, it dropped back to 0.46 in 2019, suggesting a decrease in cash reserves relative to liabilities.
Overall, while the cash ratio has shown some variability, it is important for investors and analysts to assess this ratio in conjunction with other liquidity and solvency measures to gain a more comprehensive understanding of Ametek Inc's financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023