Ametek Inc (AME)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	1,158,229	1,146,293	1,115,075	1,092,006
Long-term debt	US$ in thousands	1,895,430	1,856,130	2,186,300	2,175,880	2,158,930	2,085,360	2,147,360	2,204,590	2,229,150	2,238,920	2,262,100	2,256,910	2,281,440	2,295,810	2,753,250	2,741,800	2,271,290	2,229,250	2,368,690	2,368,200
Total stockholders’ equity	US$ in thousands	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	5,115,490	4,865,960	4,666,780	4,456,620
Return on total capital		15.89%	16.17%	15.63%	15.67%	15.69%	15.95%	15.64%	14.97%	14.32%	14.09%	13.58%	12.96%	14.20%	14.54%	14.44%	15.52%	15.68%	16.16%	15.85%	16.00%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,688,207K ÷ ($1,895,430K + $8,730,190K)
= 15.89%

The return on total capital for Ametek Inc has shown a relatively stable performance over the past eight quarters, ranging between 14.18% to 15.81%. This indicates that the company has been effectively utilizing its total capital to generate returns for its stakeholders. The consistency in the return on total capital demonstrates Ametek's ability to efficiently deploy its financial resources to generate profits. The slight fluctuations in the ratios over the quarters may be attributed to various factors affecting the company's financial performance, such as changes in market conditions, operational efficiency, or strategic decisions. Overall, the company appears to have a solid track record of effectively utilizing its total capital to generate returns for its investors.