Ametek Inc (AME)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.68% | 100.00% | 34.88% | 34.48% | 34.00% |
| Operating profit margin | 25.64% | 25.88% | 24.40% | 23.59% | 22.64% |
| Pretax margin | 23.94% | 24.35% | 23.23% | 22.05% | 23.84% |
| Net profit margin | 19.83% | 19.91% | 18.85% | 17.85% | 19.22% |
Based on the provided data for Ametek Inc, we can observe the following trends in profitability ratios:
1. Gross Profit Margin: The gross profit margin has shown a consistent improvement over the years from 34.00% in 2020 to 35.68% in 2024. This indicates that the company has been able to effectively manage its production costs and increase its profitability from sales.
2. Operating Profit Margin: The operating profit margin has also exhibited a positive trend, increasing from 22.64% in 2020 to 25.64% in 2024. This demonstrates the company's ability to control its operating expenses and generate more profit from its core business operations.
3. Pretax Margin: The pretax margin fluctuated slightly over the years, with a decline in 2021 followed by an increase in 2022 and 2023. However, it remained relatively stable overall, showcasing the company's efficiency in managing its pre-tax income in relation to its revenue.
4. Net Profit Margin: The net profit margin remained relatively stable around the range of 19% over the years, indicating that Ametek Inc has been able to effectively manage its overall expenses and taxes to generate a consistent level of profit relative to its revenue.
In summary, Ametek Inc has demonstrated a positive trend in its profitability ratios, with improvements in gross profit margin and operating profit margin, while maintaining a stable net profit margin. This suggests the company's ability to effectively control costs, maximize revenue, and sustain profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.16% | 11.37% | 12.07% | 11.00% | 9.92% |
| Return on assets (ROA) | 9.41% | 8.74% | 9.33% | 8.32% | 8.42% |
| Return on total capital | 18.38% | 19.56% | 20.22% | 18.97% | 19.64% |
| Return on equity (ROE) | 14.25% | 15.04% | 15.51% | 14.41% | 14.66% |
Ametek Inc's profitability ratios show a generally positive trend over the past five years.
1. Operating Return on Assets (Operating ROA) has increased from 9.92% in 2020 to 12.16% in 2024, indicating that the company is efficiently generating operating income relative to its assets.
2. Return on Assets (ROA) has fluctuated slightly, with a peak of 9.33% in 2022. This ratio measures how effectively the company is utilizing its assets to generate profits.
3. Return on Total Capital has shown some variability but remained relatively stable overall, with a slight decline from 19.64% in 2020 to 18.38% in 2024. This ratio assesses the company's ability to earn a return on both debt and equity investments.
4. Return on Equity (ROE) has maintained levels around the mid-teens range, with a peak of 15.51% in 2022. This ratio illustrates the company's ability to generate profits from shareholders' equity.
Overall, Ametek Inc's profitability ratios suggest a solid performance, with improvements in operating efficiency and returns on assets and equity. The company has managed to maintain profitability levels despite some fluctuations in the ratios, showcasing its ability to create value for investors.