Ametek Inc (AME)

Liquidity ratios

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
Current ratio 0.98 1.86 2.16 1.84 1.62 1.53 1.48 1.43 1.36 1.26 1.10 2.26 2.34 1.88 2.47 1.88 1.42 2.05 2.17 1.91
Quick ratio 0.49 1.06 1.15 0.90 0.81 0.75 0.76 0.75 0.75 0.89 0.79 1.84 1.95 1.57 1.72 1.33 0.80 1.35 1.35 1.12
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

Ametek Inc's liquidity ratios have shown fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, declined from 1.62 in Q4 2022 to 0.98 in Q4 2023. This indicates a decrease in the company's short-term liquidity position. However, the current ratio improved steadily in Q3 and Q2 2023, reaching a peak of 2.16 in Q2.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar trend as the current ratio. It decreased from 0.95 in Q4 2022 to 0.59 in Q4 2023 but showed improvement in the following quarters, peaking at 1.34 in Q2 2023.

The cash ratio, which reflects the company's ability to cover current liabilities with cash and cash equivalents, has also fluctuated. It ranged from 0.24 in Q4 2023 to 0.65 in Q3 2023. This ratio indicates that Ametek Inc may have limited ability to cover its short-term obligations with cash alone, particularly in Q4 2023.

Overall, while there were fluctuations in Ametek Inc's liquidity ratios, the company demonstrated improved liquidity in Q2 and Q3 2023 compared to previous quarters. However, the downward trend observed in Q4 2023 across all three ratios may warrant further monitoring to ensure the company's ability to meet its short-term obligations.

Additional liquidity measure

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 conversion cycle days 101.14 97.19 99.37 96.99 96.77 92.51 88.74 83.53 80.28 80.19 81.72 76.43 67.62 73.14 73.59 75.87 75.38 76.62 77.64 78.46

The cash conversion cycle of Ametek Inc has shown a generally increasing trend over the past eight quarters, indicating a potential slowdown in the company's cash flow efficiency. The cycle, which represents the number of days it takes for a company to convert its investments in inventory and other resources into cash receipts from sales, peaked at 109.41 days in Q4 2023.

Ametek's cash conversion cycle has ranged from a low of 88.72 days in Q1 2022 to a high of 109.41 days in Q4 2023, with fluctuations in between. The upward trend suggests that the company may be experiencing challenges in optimizing its working capital management and converting its resources into cash efficiently.

A higher cash conversion cycle indicates that the company is taking longer to convert its investments into cash, potentially tying up more capital in inventory and other operational processes. Ametek may need to focus on streamlining its supply chain, improving inventory turnover, and enhancing collection procedures to shorten its cash conversion cycle and improve overall liquidity and operational efficiency.