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.
Peer comparison
Dec 31, 2023