Ametek Inc (AME)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,824,670 | 2,528,060 | 2,128,760 | 2,522,470 | 2,025,770 |
| Total current liabilities | US$ in thousands | 2,882,570 | 1,564,200 | 1,563,310 | 1,075,920 | 1,425,860 |
| Current ratio | 0.98 | 1.62 | 1.36 | 2.34 | 1.42 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,824,670K ÷ $2,882,570K
= 0.98
The current ratio of Ametek Inc has exhibited fluctuations over the past five years. The ratio was at its lowest in 2023 at 0.98, indicating that the company may have challenges meeting its short-term obligations with its current assets alone. This decline from the previous year's ratio of 1.62 suggests a potential deterioration in liquidity position.
In 2022 and 2021, the current ratio was 1.62 and 1.36, respectively. While the ratio in 2022 indicates that the company had more than enough current assets to cover its current liabilities, the decrease to 1.36 in 2021 may raise concerns about a slight decline in liquidity.
On a positive note, the current ratio was strongest in 2020 at 2.34, suggesting a healthy liquidity position where the company had more than double its current assets compared to current liabilities. In 2019, the current ratio was 1.42, indicating adequate liquidity to cover short-term obligations.
Overall, the trend in Ametek Inc's current ratio indicates some variability in the company's ability to meet its short-term obligations with current assets. It may be important for stakeholders to closely monitor changes in the current ratio to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2023