EMCOR Group Inc (EME)

Short-term

Turnover ratios

Based on the provided data, EMCOR Group Inc's activity ratios can be analyzed as follows:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. EMCOR Group Inc's inventory turnover has shown a fluctuating trend over the years, decreasing from 155.31 in 2021 to 94.73 in 2023, before increasing to 123.36 in 2024. A higher inventory turnover ratio generally indicates better efficiency in selling inventory and managing stock levels.

2. Receivables Turnover: There is a lack of data available for the receivables turnover ratio for EMCOR Group Inc across all the years. This ratio, when available, would have shown how quickly the company collects on outstanding receivables. A higher receivables turnover ratio would suggest effective credit and collection policies.

3. Payables Turnover: Similarly, data for the payables turnover ratio is not provided for any year. This ratio would have indicated how quickly the company pays its suppliers. A higher payables turnover ratio would suggest efficient management of payables and cash flow.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenues. EMCOR Group Inc's working capital turnover has shown a varying trend, increasing from 9.19 in 2020 to 15.63 in 2022, before slightly declining to 11.79 in 2024. A higher working capital turnover ratio generally indicates effective utilization of resources to generate revenue.

In conclusion, EMCOR Group Inc has demonstrated mixed performance in its activity ratios over the years. The company has shown fluctuations in inventory turnover and working capital turnover, while data for receivables turnover and payables turnover is unavailable. A detailed analysis of all activity ratios together would provide a more comprehensive view of how efficiently EMCOR Group Inc is managing its operations and resources.

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Average number of days

Based on the provided data for EMCOR Group Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand indicate the average number of days it takes for the company to sell its inventory.
- EMCOR Group Inc had a decreasing trend in its DOH from 2.63 days on December 31, 2020, to 2.96 days on December 31, 2024.
- A lower DOH is generally favorable as it signifies efficient inventory management.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data provided for the days of sales outstanding, which is used to measure how quickly the company collects its accounts receivable.
- Without this data, it is challenging to assess EMCOR's efficiency in collecting payments from customers.

3. Number of Days of Payables:
- Similarly, there is no data available for the number of days of payables, which represents how long it takes the company to pay its suppliers.
- The absence of this information makes it difficult to evaluate EMCOR's payment terms and working capital management.

In conclusion, based on the available data, we can see that EMCOR Group Inc has shown improvement in its inventory management efficiency over the years. However, a more comprehensive analysis would require additional information on days of sales outstanding and number of days of payables to provide a holistic view of the company's activity ratios and working capital dynamics.

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Long-term

EMCOR Group Inc's fixed asset turnover ratio has shown an increasing trend over the years, indicating improved efficiency in generating sales from its fixed assets. The ratio increased from 55.53 in December 2020 to 70.18 in December 2022. However, data for December 2023 and December 2024 is unavailable.

In comparison, the total asset turnover ratio also demonstrates an increasing trend, reflecting the company's ability to generate more revenue relative to its total assets. The ratio rose from 1.74 in December 2020 to 2.00 in December 2022 before slightly declining to 1.89 in December 2024. This suggests that EMCOR Group Inc is effectively utilizing its total assets to drive sales growth.

Overall, both the fixed asset turnover and total asset turnover ratios reveal positive signs of operational efficiency and asset utilization within EMCOR Group Inc during the period analyzed.