Ametek Inc (AME)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	373,999	409,804	345,386	346,772	1,212,820
Short-term investments	US$ in thousands	—	452,981	—	—	292,625
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	2,098,590	2,882,570	1,564,200	1,563,310	1,075,920
Quick ratio		0.18	0.30	0.22	0.22	1.40

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($373,999K + $—K + $—K) ÷ $2,098,590K
= 0.18

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that the company has enough liquid assets to cover its short-term liabilities.

For Ametek Inc, the quick ratio has fluctuated over the years. As of December 31, 2020, the quick ratio was 1.40, indicating that the company had more than enough liquid assets to cover its short-term obligations. However, there was a significant decrease in the quick ratio to 0.22 by the end of 2021 and this low level was maintained through the end of 2022.

Subsequently, there was a slight improvement in the quick ratio to 0.30 by the end of 2023. However, the ratio decreased again to 0.18 by the end of 2024, indicating a potential liquidity challenge for Ametek Inc at that point in time.

Overall, the trend in the quick ratio for Ametek Inc shows some variability, and it is vital for investors and stakeholders to monitor this ratio closely to ensure the company's ability to meet its short-term obligations.