Ametek Inc (AME)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	1,376,124	1,331,731	1,331,860	1,318,419	1,313,188	1,277,405	1,234,676	1,192,807	1,159,542	1,134,142	1,093,961	1,043,267	990,053	929,397	876,518	811,056	872,439	872,191	888,359	937,645
Revenue (ttm)	US$ in thousands	6,941,170	6,910,450	6,824,730	6,736,010	6,596,950	6,491,740	6,420,690	6,289,130	6,150,530	6,028,600	5,917,490	5,789,290	5,546,510	5,241,720	4,927,980	4,553,550	4,540,030	4,645,900	4,795,590	5,073,080
Net profit margin		19.83%	19.27%	19.52%	19.57%	19.91%	19.68%	19.23%	18.97%	18.85%	18.81%	18.49%	18.02%	17.85%	17.73%	17.79%	17.81%	19.22%	18.77%	18.52%	18.48%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,376,124K ÷ $6,941,170K
= 19.83%

Net profit margin is a key financial ratio that measures the percentage of each dollar of revenue that results in net income after accounting for all expenses. Based on the data provided for Ametek Inc, the net profit margin has shown fluctuations over the periods analyzed.

Starting at 18.48% in March 2020, the net profit margin increased steadily, reaching its peak of 19.91% by December 2023. This upward trend indicates that the company was effectively controlling costs relative to its revenue during this period, resulting in higher profitability.

However, in the subsequent periods, the net profit margin experienced a slight decline, dropping to 19.27% by September 2024. This decrease may suggest that the company's expenses were rising at a faster rate than its revenue growth, impacting its overall profitability.

Overall, Ametek Inc's net profit margin demonstrated stability and efficiency in managing its expenses to generate profit, with fluctuations reflecting changes in the company's financial performance over time. An analysis of the underlying factors driving these fluctuations would provide deeper insights into the company's operational and financial strategies.