Ametek Inc (AME)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,023,500 | 13,093,400 | 12,839,900 | 12,616,000 | 12,431,100 | 12,038,900 | 11,985,000 | 11,972,000 | 11,898,200 | 11,679,700 | 11,755,300 | 10,579,900 | 10,357,500 | 10,433,400 | 10,311,200 | 10,601,900 | 9,844,560 | 9,219,710 | 9,069,600 | 8,891,480 |
| 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 |
| Financial leverage ratio | 1.72 | 1.57 | 1.59 | 1.63 | 1.66 | 1.69 | 1.72 | 1.73 | 1.73 | 1.78 | 1.85 | 1.73 | 1.74 | 1.83 | 1.88 | 1.99 | 1.92 | 1.89 | 1.94 | 2.00 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,023,500K ÷ $8,730,190K
= 1.72
Over the past eight quarters, Ametek Inc's financial leverage ratio has fluctuated within a range of 1.57 to 1.73. The ratio peaked at 1.73 in Q1 2022 and hit its lowest point at 1.57 in Q3 2023. Overall, the trend shows a slight decrease in leverage from Q1 2022 to Q3 2023 before slightly increasing in the most recent quarter.
A financial leverage ratio of above 1 indicates that Ametek Inc relies more on debt financing than equity financing to fund its operations and growth. The decreasing trend in leverage ratio may suggest that the company is gradually reducing its reliance on debt, which could be a positive indicator of financial stability and risk management. However, the slight uptick in the latest quarter should be monitored to understand if it represents a temporary fluctuation or a reversal of the decreasing trend.
Analyzing the financial leverage ratio in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive view of Ametek Inc's overall financial health and performance.
Peer comparison
Dec 31, 2023