Ametek Inc (AME)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,023,500 | 12,431,100 | 11,898,200 | 10,357,500 | 9,844,560 |
| Total stockholders’ equity | US$ in thousands | 8,730,190 | 7,476,510 | 6,871,880 | 5,949,350 | 5,115,490 |
| Financial leverage ratio | 1.72 | 1.66 | 1.73 | 1.74 | 1.92 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,023,500K ÷ $8,730,190K
= 1.72
The financial leverage ratio of Ametek Inc has shown some fluctuations over the past five years, ranging from 1.66 to 1.92. The ratio indicates the proportion of the company's debt financing compared to its equity financing. A higher financial leverage ratio suggests that the company relies more on debt to finance its operations, while a lower ratio indicates a higher proportion of equity in the capital structure.
In the case of Ametek Inc, the ratio has been relatively stable around the 1.7 range, with minor fluctuations. This indicates that the company has maintained a moderate level of debt compared to its equity over the years. It is important to note that a financial leverage ratio of 1.0 is considered ideal, as it signifies a balanced mix of debt and equity.
Overall, Ametek Inc has managed its financial leverage effectively, maintaining a relatively stable ratio over the years. However, it is essential for investors to further analyze the company's debt structure and overall financial health to assess the risks associated with its leverage position.
Peer comparison
Dec 31, 2023