Ametek Inc (AME)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 393,030 | 735,376 | 567,912 | 368,065 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 325,463 | 322,157 | 297,152 | 292,625 | 281,837 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.14 | 0.50 | 0.45 | 0.28 | 0.22 | 0.19 | 0.21 | 0.21 | 0.22 | 0.42 | 0.38 | 1.25 | 1.40 | 1.13 | 1.11 | 0.85 | 0.28 | 0.66 | 0.58 | 0.37 |
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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Analyzing the cash ratio trend for Ametek Inc from Q1 2022 to Q4 2023, we observe fluctuations in the ratio values. The cash ratio was lowest in Q4 2022 at 0.33 and reached its peak in Q3 2023 at 0.65. This suggests that the company experienced varying levels of liquidity over the period.
The company's cash ratio generally increased from Q4 2022 to Q3 2023 before decreasing slightly in Q4 2023. This improvement in liquidity from Q4 2022 to Q3 2023 indicates that Ametek Inc enhanced its ability to meet short-term obligations using cash resources. However, the subsequent decline in the cash ratio in Q4 2023 may indicate a potential decrease in liquidity or a shift in the company's cash management strategies.
Overall, while the company's cash ratio exhibited fluctuations, it remained above 1 in all periods, indicating Ametek Inc maintained a sufficient level of cash to cover its short-term liabilities throughout the analyzed period.
Peer comparison
Dec 31, 2023