Ametek Inc (AME)

Debt-to-equity 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-equity ratio		0.22	0.29	0.32	0.38	0.44

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,895,430K ÷ $8,730,190K
= 0.22

The debt-to-equity ratio of Ametek Inc has shown a fluctuating trend over the past five years. The ratio decreased from 0.54 in 2019 to 0.32 in 2022, indicating a reduction in debt relative to equity. However, in 2023, the ratio increased to 0.38, suggesting a slight increase in debt proportionately to equity compared to the previous year.

Overall, the company's debt levels have generally been well managed, with the ratio consistently below 1. A lower debt-to-equity ratio is often considered favorable as it indicates lower financial risk and reliance on debt financing. However, it is essential to assess the specific industry and business circumstances when interpreting this ratio to determine whether the current debt level is appropriate for Ametek Inc's operations and growth plans.