EMCOR Group Inc (EME)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,493,500 | 9,472,530 | 8,401,840 | 7,401,680 | 7,818,740 |
| Payables | US$ in thousands | 935,967 | 849,284 | 734,275 | 671,886 | 665,402 |
| Payables turnover | 11.21 | 11.15 | 11.44 | 11.02 | 11.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,493,500K ÷ $935,967K
= 11.21
The payables turnover ratio represents how efficiently Emcor Group, Inc. is managing its trade payables. A higher turnover ratio indicates that the company is paying off its suppliers more quickly.
In this case, Emcor Group, Inc. has exhibited a relatively stable payables turnover over the past five years, fluctuating between 11.02 and 11.75. This suggests that the company has been consistently managing its trade payables effectively.
The average payables turnover ratio over the five-year period is approximately 11.31. This indicates that Emcor Group, Inc. is, on average, paying off its suppliers approximately 11.31 times a year.
Overall, the consistent and relatively high payables turnover ratio of Emcor Group, Inc. signifies efficient management of the company's payables, potentially maintaining good relationships with suppliers and ensuring timely payments. It also suggests effective working capital management practices within the company.
Peer comparison
Dec 31, 2023