Ametek Inc (AME)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,774,501 | 1,749,199 | 1,737,115 | 1,704,622 | 1,688,207 | 1,648,678 | 1,604,546 | 1,556,254 | 1,511,878 | 1,470,161 | 1,422,558 | 1,367,940 | 1,303,551 | 1,239,916 | 1,169,034 | 1,085,958 | 1,168,371 | 1,163,224 | 1,189,501 | 1,252,454 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,655,300 | 9,550,220 | 9,252,400 | 8,968,220 | 8,730,190 | 8,342,510 | 8,081,370 | 7,757,120 | 7,476,510 | 7,132,670 | 6,950,090 | 6,931,690 | 6,871,880 | 6,558,400 | 6,343,300 | 6,120,750 | 5,949,350 | 5,704,190 | 5,486,440 | 5,326,000 |
| Return on total capital | 18.38% | 18.32% | 18.77% | 19.01% | 19.34% | 19.76% | 19.85% | 20.06% | 20.22% | 20.61% | 20.47% | 19.73% | 18.97% | 18.91% | 18.43% | 17.74% | 19.64% | 20.39% | 21.68% | 23.52% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,774,501K ÷ ($—K + $9,655,300K)
= 18.38%
Based on the provided data, the return on total capital for Ametek Inc has exhibited a gradual decline from 23.52% as of March 31, 2020, to 18.38% as of December 31, 2024. The return on total capital represents the company's ability to generate profits from both its debt and equity investments.
During this period, the return on total capital saw fluctuations but generally trended downwards, indicating a potential decrease in the efficiency of the company's capital utilization over time. Despite some fluctuations, the return on total capital remained relatively stable within the range of 17.74% to 20.61% in the most recent quarters.
A decreasing trend in the return on total capital may signify challenges in optimizing the company's overall capital structure and operational efficiency. It is important for investors and stakeholders to closely monitor this ratio as it can provide insights into the company's ability to generate returns on the total funds invested in the business. Additional analysis and comparison with industry benchmarks may help in better evaluating Ametek Inc's performance in utilizing its total capital effectively.
Peer comparison
Dec 31, 2024