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.