EMCOR Group Inc (EME)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,493,540 | 10,167,080 | 9,918,080 | 9,686,900 | 9,472,520 | 9,214,650 | 8,941,850 | 8,678,860 | 8,401,850 | 8,062,340 | 7,760,540 | 7,397,890 | 7,401,680 | 7,543,230 | 7,656,450 | 7,935,530 | 7,818,730 | 7,672,700 | 7,458,660 | 7,143,880 |
| Payables | US$ in thousands | 935,967 | 824,155 | 790,158 | 724,104 | 849,284 | 751,074 | 722,924 | 719,792 | 734,275 | 637,865 | 635,803 | 624,884 | 671,886 | 596,093 | 563,128 | 592,576 | 665,402 | 584,824 | 579,461 | 577,883 |
| Payables turnover | 11.21 | 12.34 | 12.55 | 13.38 | 11.15 | 12.27 | 12.37 | 12.06 | 11.44 | 12.64 | 12.21 | 11.84 | 11.02 | 12.65 | 13.60 | 13.39 | 11.75 | 13.12 | 12.87 | 12.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,493,540K ÷ $935,967K
= 11.21
Emcor Group, Inc.'s payables turnover ratio provides insight into how efficiently the company is managing its accounts payable. The trend in payables turnover over the past eight quarters shows consistent levels of efficiency in paying off trade payables. The payables turnover ratio has ranged from 11.15 to 13.38, indicating that Emcor Group is effectively managing its accounts payable by making payments multiple times throughout the year.
A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which may indicate good relationships with suppliers and the ability to negotiate favorable credit terms. On the other hand, a declining payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or signal financial difficulties.
Overall, Emcor Group, Inc.'s consistent and relatively high payables turnover ratios indicate that the company is efficiently managing its accounts payable and maintaining positive relationships with its suppliers.
Peer comparison
Dec 31, 2023