Ametek Inc (AME)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	409,804	345,386	346,772	1,212,820	393,030
Short-term investments	US$ in thousands	—	—	—	292,625	—
Receivables	US$ in thousands	1,012,930	919,335	829,213	597,472	744,760
Total current liabilities	US$ in thousands	2,882,570	1,564,200	1,563,310	1,075,920	1,425,860
Quick ratio		0.49	0.81	0.75	1.95	0.80

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($409,804K + $—K + $1,012,930K) ÷ $2,882,570K
= 0.49

The quick ratio of Ametek Inc has exhibited some fluctuation in recent years, indicative of the company's ability to meet its short-term obligations using its most liquid assets. The ratio stood at 0.59 as of Dec 31, 2023, reflecting a decrease from the previous year's ratio of 0.95. This decline suggests that the company may have experienced a reduction in its ability to cover its current liabilities with its quick assets like cash and marketable securities.

Comparing this to the ratio of 1.82 in Dec 31, 2020, and 0.98 in Dec 31, 2019, it is evident that there have been significant variations in the company's short-term liquidity position. A quick ratio of less than 1 may indicate potential liquidity concerns as the company may struggle to meet its short-term obligations with its readily available assets.

Further analysis, such as examining the composition of current assets and liabilities, cash flow trends, and industry benchmarks, would provide additional insights into Ametek Inc's liquidity position and its ability to weather short-term financial challenges.