Ametek Inc (AME)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.77% | 18.15% | 17.22% | 17.05% | 16.86% |
| Operating profit margin | 26.21% | 24.72% | 23.91% | 22.37% | 23.22% |
| Pretax margin | 24.66% | 23.53% | 22.35% | 23.55% | 21.10% |
| Net profit margin | 20.16% | 19.10% | 18.09% | 18.99% | 16.99% |
Ametek Inc has demonstrated a consistent improvement in its profitability over the past five years. The gross profit margin has gradually increased from 34.65% in 2019 to 36.14% in 2023, indicating the company's ability to efficiently control its production costs and generate higher revenues.
The operating profit margin has also shown a positive trend, rising from 22.82% in 2019 to 25.88% in 2023. This indicates that the company has been effective in managing its operating expenses and maximizing its operating income.
Similarly, the pretax margin has improved steadily from 20.74% in 2019 to 24.35% in 2023, reflecting the company's ability to generate higher profits before accounting for taxes.
The net profit margin, which indicates the company's bottom-line profitability, has also seen a notable increase from 16.70% in 2019 to 19.91% in 2023. This signifies that Ametek Inc has been successful in managing its tax obligations and other costs, resulting in higher net earnings relative to its revenues.
Overall, these positive trends in profitability ratios suggest that Ametek Inc has been effectively managing its operations and finances to drive sustained growth and profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.37% | 12.07% | 11.00% | 9.92% | 11.96% |
| Return on assets (ROA) | 8.74% | 9.33% | 8.32% | 8.42% | 8.75% |
| Return on total capital | 15.89% | 15.69% | 14.32% | 14.20% | 15.68% |
| Return on equity (ROE) | 15.04% | 15.51% | 14.41% | 14.66% | 16.84% |
Ametek Inc has demonstrated a consistent performance in terms of profitability ratios over the past five years.
- The Operating return on assets (Operating ROA) has shown a slight decline from 11.96% in 2019 to 11.37% in 2023, indicating a moderate decrease in the company's ability to generate operating income from its total assets.
- Return on assets (ROA) has fluctuated over the years but has remained relatively stable, ranging from 8.32% in 2021 to 9.33% in 2022.
- The Return on total capital has shown a similar trend to the ROA, with a peak of 15.22% in 2022 and a low of 12.29% in 2020.
- Return on equity (ROE) has also displayed consistency, with a range between 14.41% in 2021 and 16.84% in 2019, showcasing the company's ability to generate profits from shareholders' equity.
Overall, Ametek Inc's profitability ratios reflect a solid performance with stable returns over the past five years, despite some fluctuations in certain ratios. Their strong Return on Equity indicates efficient utilization of shareholders' funds, while the Operating ROA and ROA ratios suggest effective management of assets in generating income.