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.