Ametek Inc (AME)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.18	0.18	0.21	0.22	0.22	0.23	0.24	0.24	0.24	0.25	0.26	0.27	0.28	0.29	0.33	0.34	0.31	0.31	0.34	0.35

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 shown a relatively stable trend over the past eight quarters, ranging between 0.21 and 0.28. The ratio measures the proportion of the company's capital that is funded by debt, with values closer to 0 indicating a lower reliance on debt financing.

In the most recent quarter, Q4 2023, the debt-to-capital ratio increased to 0.28 from the previous quarter's value of 0.21. This rise may suggest that the company has taken on more debt relative to its total capital, potentially signaling a shift towards higher leverage.

However, it is important to note that the ratio has fluctuated within a relatively narrow range over the past two years, indicating a consistent capital structure management strategy. A lower debt-to-capital ratio can indicate a stronger financial position and lower financial risk, while a higher ratio may signal increased financial leverage and risk.

Overall, monitoring the debt-to-capital ratio can provide insights into Ametek Inc's capital structure decisions and financial risk management practices, which can be crucial for investors and stakeholders assessing the company's financial health and stability.