Ametek Inc (AME)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.18 | 0.22 | 0.24 | 0.28 | 0.31 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,895,430K ÷ ($1,895,430K + $8,730,190K)
= 0.18
The debt-to-capital ratio of Ametek Inc has been fluctuating over the past five years. The ratio indicates the proportion of a company's capital that is funded by debt. In 2023, the debt-to-capital ratio increased to 0.28 from 0.24 in 2022, showing that the company relied more on debt to finance its operations. However, it is still lower than the ratios observed in 2020 and 2019, indicating a reduction in the company's debt relative to its capital over the period.
Overall, the trend in the debt-to-capital ratio of Ametek Inc suggests a moderate level of debt usage compared to its capital structure, with some variability in the ratio over the years. It is important for investors and stakeholders to monitor this ratio to assess the company's leverage position and financial risk.
Peer comparison
Dec 31, 2023