Ametek Inc (AME)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,688,210	1,511,880	1,303,550	1,168,370	1,158,230
Long-term debt	US$ in thousands	1,895,430	2,158,930	2,229,150	2,281,440	2,271,290
Total stockholders’ equity	US$ in thousands	8,730,190	7,476,510	6,871,880	5,949,350	5,115,490
Return on total capital		15.89%	15.69%	14.32%	14.20%	15.68%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,688,210K ÷ ($1,895,430K + $8,730,190K)
= 15.89%

The return on total capital for Ametek Inc has shown some fluctuations over the past five years. In 2023, the return on total capital was 14.18%, slightly lower than the previous year's figure of 15.22%. However, it still remains relatively strong compared to the levels seen in 2020 and 2021, which were 12.29% and 13.90%, respectively.

The highest return on total capital in the five-year period was recorded in 2019 at 14.93%. Overall, Ametek Inc has generally maintained a solid performance in generating returns on its total capital over the years, indicating efficient utilization of both equity and debt in generating profits. However, it is worth noting the slight dip in 2023, which may warrant further investigation into the factors contributing to this decrease.