Ametek Inc (AME)
Interest coverage
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) | US$ in thousands | 1,774,500 | 1,707,460 | 1,511,880 | 1,303,550 | 1,168,370 |
Interest expense | US$ in thousands | 112,962 | 81,795 | 83,186 | 80,381 | 86,062 |
Interest coverage | 15.71 | 20.87 | 18.17 | 16.22 | 13.58 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,774,500K ÷ $112,962K
= 15.71
The interest coverage ratio for Ametek Inc has shown a consistent upward trend over the past five years, indicating the company's ability to comfortably meet its interest obligations with its earnings. The ratio has increased from 13.58 in 2020 to 15.71 in 2024. This suggests that Ametek Inc has been generating a sufficient operating income to cover its interest expenses, with the ratio peaking at 20.87 in 2023. The company's strong interest coverage indicates a healthy financial position and ability to handle debt servicing requirements effectively.
Peer comparison
Dec 31, 2024
Company name
Symbol
Interest coverage
Ametek Inc
AME
15.71
Cognex Corporation
CGNX
—
Danaher Corporation
DHR
0.00
Fortive Corp
FTV
—
Keysight Technologies Inc
KEYS
11.30
Mesa Laboratories Inc
MLAB
-47.38
MKS Instruments Inc
MKSI
1.63
Roper Technologies, Inc.
ROP
203.76
Sensata Technologies Holding NV
ST
0.92