Ametek Inc (AME)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,774,500 | 1,707,460 | 1,511,880 | 1,303,550 | 1,168,370 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,655,300 | 8,730,190 | 7,476,510 | 6,871,880 | 5,949,350 |
| Return on total capital | 18.38% | 19.56% | 20.22% | 18.97% | 19.64% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,774,500K ÷ ($—K + $9,655,300K)
= 18.38%
The return on total capital for Ametek Inc has shown some fluctuations over the past five years. Starting at 19.64% on December 31, 2020, it decreased slightly to 18.97% by the end of 2021. However, in 2022, there was an improvement with a return of 20.22%. In the subsequent years, the return on total capital decreased to 19.56% by the end of 2023 and further to 18.38% by the end of 2024.
Overall, the return on total capital for Ametek Inc has been relatively stable, hovering around the high teens to low twenties percentage range. This indicates that the company has been efficient in generating returns from its total capital investment, although there was a slight decline in the most recent year. Further analysis of the company's financial performance and capital allocation strategies may provide insights into the factors influencing these fluctuations.
Peer comparison
Dec 31, 2024