Ametek Inc (AME)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,707,459	1,660,557	1,606,942	1,552,993	1,500,692	1,463,753	1,416,796	1,368,565	1,308,670	1,245,632	1,178,810	1,089,189	1,027,884	1,027,426	1,057,741	1,126,161	1,177,380	1,161,745	1,125,955	1,100,631
Total assets	US$ in thousands	15,023,500	13,093,400	12,839,900	12,616,000	12,431,100	12,038,900	11,985,000	11,972,000	11,898,200	11,679,700	11,755,300	10,579,900	10,357,500	10,433,400	10,311,200	10,601,900	9,844,560	9,219,710	9,069,600	8,891,480
Operating ROA		11.37%	12.68%	12.52%	12.31%	12.07%	12.16%	11.82%	11.43%	11.00%	10.66%	10.03%	10.29%	9.92%	9.85%	10.26%	10.62%	11.96%	12.60%	12.41%	12.38%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,707,459K ÷ $15,023,500K
= 11.37%

Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company is utilizing its assets to generate operating income. A higher operating ROA suggests better asset utilization and operational performance.

Analyzing the operating ROA trends of Ametek Inc over the past eight quarters, we observe a generally stable performance, ranging from 11.37% to 12.68%. The company has maintained a consistent level of efficiency in generating operating income relative to its total assets during this period.

In Q3 2023, the operating ROA showed a slight decrease to 12.68% from 12.52% in Q2 2023, indicating a minor dip in asset efficiency. However, the ratio remained relatively strong compared to the previous quarters.

Overall, Ametek Inc's operating ROA has been consistently above 10%, which is a positive indicator of the company's ability to efficiently generate operating income from its assets. The management's effective utilization of resources and operational efficiency is reflected in the stable operating ROA performance over the recent quarters.