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.
Peer comparison
Dec 31, 2023