EMCOR Group Inc (EME)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 94.73 88.05 93.50 96.48 110.61 90.45 95.67 121.45 155.31 125.02 119.92 153.44 138.77 192.17 188.63 224.25 193.31 198.15 190.37 181.12
Receivables turnover 3.93 3.95 4.11 4.26 4.31 4.29 4.29 4.42 4.49 4.37 4.39 4.32 4.58 4.59 4.65 4.53 4.52 4.67 4.50 4.67
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
Working capital turnover 13.55 14.46 13.62 12.62 15.63 14.54 14.48 11.08 9.62 9.78 9.51 8.70 9.19 9.71 10.34 10.36 12.72 11.77 12.23 13.09

The activity ratios of Emcor Group, Inc. provide insights into the efficiency of the company in managing its inventory, receivables, payables, and working capital.

- Inventory turnover: The inventory turnover ratio has been fluctuating but generally decreasing over the past eight quarters, indicating that Emcor Group is selling its inventory at a slower rate. This may suggest either excess inventory levels or a slowdown in sales.

- Receivables turnover: The receivables turnover ratio has been relatively stable, showing a consistent ability to collect receivables from customers. A higher turnover ratio indicates that Emcor is efficient in collecting outstanding payments from customers.

- Payables turnover: The payables turnover ratio has shown some variation but remains relatively steady, indicating that Emcor is managing its payables effectively. A higher turnover ratio suggests that the company is paying its suppliers promptly.

- Working capital turnover: The working capital turnover ratio has also fluctuated, but the general trend is upward, indicating that Emcor is generating more revenue per dollar of working capital. This may suggest improved operational efficiency or better utilization of resources.

Overall, while there are fluctuations in these activity ratios, a closer analysis is needed to determine the specific factors driving these changes and to assess their impact on Emcor's overall operational performance.

Average number of days

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
Days of inventory on hand (DOH) days 3.85 4.15 3.90 3.78 3.30 4.04 3.82 3.01 2.35 2.92 3.04 2.38 2.63 1.90 1.94 1.63 1.89 1.84 1.92 2.02
Days of sales outstanding (DSO) days 92.93 92.47 88.88 85.66 84.61 85.11 85.11 82.49 81.25 83.43 83.20 84.50 79.75 79.48 78.49 80.54 80.79 78.14 81.12 78.21
Number of days of payables days 32.56 29.59 29.08 27.28 32.73 29.75 29.51 30.27 31.90 28.88 29.90 30.83 33.13 28.84 26.85 27.26 31.06 27.82 28.36 29.53

Emcor Group, Inc.'s activity ratios provide insight into how efficiently the company manages its assets and liabilities.

1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates the number of days it takes for Emcor to sell its inventory.
- Emcor's inventory turnover has been relatively stable over the quarters, ranging from 3.01 to 4.15 days.
- A lower DOH implies efficient inventory management, and Emcor has shown consistent control over its inventory levels.

2. Days of Sales Outstanding (DSO):
- DSO measures how quickly Emcor collects payments from customers.
- Emcor's DSO has ranged from 82.49 to 92.93 days, indicating that it takes the company around 83 to 93 days to collect on its sales.
- A lower DSO is generally desirable as it signifies faster cash conversion, and Emcor has shown some fluctuations in its collection efficiency.

3. Number of Days of Payables:
- This ratio reflects how long Emcor takes to pay its suppliers.
- Emcor's payables period has ranged from 27.28 to 32.73 days, showing the company takes around 27 to 33 days to settle its payables.
- A higher number of days of payables can indicate favorable credit terms with suppliers, but careful management is required to strike a balance between payment timing and relationships.

Overall, Emcor Group, Inc. demonstrates sound inventory management practices with relatively stable inventory turnover, moderate collection efficiency with some variability in DSO, and a reasonable payables period. Further analysis and comparison with industry benchmarks can provide a more comprehensive view of the company's activity ratios.

Long-term

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
Fixed asset turnover 70.15 70.85 72.03 70.90 70.18 68.98 67.32 67.34 65.13 62.15 59.30 55.99 55.53 57.49 56.83 59.02 58.74 60.39 60.14 57.83
Total asset turnover 1.90 1.94 1.98 2.02 2.00 1.98 2.03 1.95 1.82 1.80 1.80 1.74 1.74 1.85 1.96 1.93 1.90 1.99 1.99 1.96

The fixed asset turnover ratio for Emcor Group, Inc. has been fairly consistent over the quarters, ranging from 67.32 to 72.03. This indicates that the company efficiently generates revenue from its fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio implies that the company is using its fixed assets effectively to generate sales.

On the other hand, the total asset turnover ratio fluctuated between 1.90 and 2.03 over the quarters. This ratio measures how efficiently the company is generating sales from all its assets. A higher total asset turnover ratio suggests that the company is effectively utilizing all its assets to generate revenue.

Overall, the consistent performance of the fixed asset turnover ratio and the fluctuation in the total asset turnover ratio indicate that Emcor Group, Inc. is effectively managing and utilizing its assets to generate sales. However, further analysis and comparison with industry benchmarks would provide a better understanding of the company's long-term activity efficiency.