Ametek Inc (AME)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	373,999	396,266	396,573	373,765	409,804	841,901	605,587	399,873	345,386	309,944	348,653	340,304	346,772	358,676	390,644	1,123,660	1,212,820	1,304,840	1,130,980	1,253,380
Short-term investments	US$ in thousands	—	487,793	—	—	—	—	—	—	—	—	-388,156	—	—	325,463	322,157	297,152	292,625	281,837	—	—
Total current liabilities	US$ in thousands	2,098,590	1,966,920	2,203,050	2,502,510	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
Cash ratio		0.18	0.45	0.18	0.15	0.14	0.50	0.45	0.28	0.22	0.19	-0.02	0.21	0.22	0.42	0.38	1.25	1.40	1.13	1.11	0.85

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($373,999K + $—K) ÷ $2,098,590K
= 0.18

The cash ratio of Ametek Inc has fluctuated over the years, indicating the company's ability to cover its short-term obligations with its cash and cash equivalents. In December 2020, the cash ratio reached its highest point at 1.40, reflecting a strong liquidity position. However, the ratio dipped significantly in the following quarters, dropping to 0.22 by December 2021. This decline may suggest a potential strain on the company's liquidity.

Throughout 2022 and 2023, the cash ratio improved slightly but remained relatively low, ranging between 0.15 and 0.50. The ratio of less than 1 during these periods indicates that Ametek Inc may have had challenges meeting its short-term liabilities solely with its available cash.

By the end of December 2024, the cash ratio stood at 0.18, showing a slight increase from the previous quarter. While there has been some fluctuation, the company should aim to maintain a cash ratio above 1 to ensure it has enough liquid assets to cover its short-term obligations comfortably. Continued monitoring and management of the cash position will be crucial for Ametek Inc to maintain financial stability and meet its financial commitments effectively.