Ametek Inc (AME)

Quick ratio

		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	US$ in thousands	409,804	841,901	605,587	399,873	345,386	309,944	348,653	340,304	346,772	358,676	390,644	1,123,660	1,212,820	1,304,840	1,130,980	1,253,380	393,030	735,376	567,912	368,065
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	325,463	322,157	297,152	292,625	281,837	—	—	—	—	—	—
Receivables	US$ in thousands	1,012,930	936,803	936,909	901,506	919,335	876,460	885,080	854,500	829,213	768,386	754,045	678,467	597,472	614,773	620,160	712,200	744,760	761,961	757,522	763,156
Total current liabilities	US$ in thousands	2,882,570	1,673,720	1,341,190	1,452,670	1,564,200	1,591,380	1,633,030	1,590,740	1,563,310	1,633,830	1,857,630	1,138,460	1,075,920	1,403,490	1,017,450	1,477,670	1,425,860	1,110,520	978,558	1,007,230
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

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 shown fluctuations over the past eight quarters, ranging from as low as 0.59 to as high as 1.34. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

In Q4 2023, the quick ratio decreased to 0.59, indicating a significant decline in the company's ability to cover its current liabilities with its quick assets. This may suggest potential liquidity challenges or a higher reliance on inventory to meet short-term obligations.

Conversely, in Q2 2023, the quick ratio improved to 1.34, reflecting a strong ability to fulfill short-term liabilities with liquid assets. This could signal efficient management of working capital and a reduced risk of liquidity problems.

Overall, the trend in Ametek Inc's quick ratio shows variability in its liquidity position, highlighting the importance of monitoring changes in the company's ability to meet short-term obligations with readily available assets.