Ametek Inc (AME)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	2,603,030	2,824,670	2,528,060	2,128,760	2,522,470
Total current liabilities	US$ in thousands	2,098,590	2,882,570	1,564,200	1,563,310	1,075,920
Current ratio		1.24	0.98	1.62	1.36	2.34

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,603,030K ÷ $2,098,590K
= 1.24

The current ratio of Ametek Inc has experienced fluctuations over the past five years. As of December 31, 2020, the company's current ratio stood at a comfortable 2.34, indicating a strong ability to cover its short-term obligations with current assets. However, there was a significant decrease in the current ratio to 1.36 by December 31, 2021, suggesting a potential decrease in liquidity.

Subsequently, the current ratio improved to 1.62 by December 31, 2022, showing a better ability to meet current liabilities with current assets. However, there was a slight decline to 0.98 by December 31, 2023, which may raise concerns about the company's short-term liquidity position.

By the end of December 31, 2024, the current ratio recovered to 1.24, although it remains below the ideal ratio of 2:1. This indicates that while the company's liquidity position has improved compared to the previous year, there may still be some challenges in meeting short-term obligations solely with current assets. Further monitoring and analysis of Ametek Inc's liquidity management may be necessary to ensure financial health and stability.