EMCOR Group Inc (EME)

Short-term

Turnover ratios

The activity ratios of EMCOR Group Inc provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. EMCOR's inventory turnover has fluctuated over time, indicating changes in inventory management efficiency. A higher turnover ratio generally indicates efficient inventory management, while a lower ratio may suggest excess inventory or slow sales.

2. Receivables Turnover: The receivables turnover ratio shows how efficiently a company collects payment from its customers on credit sales. The absence of data suggests that receivables turnover was not disclosed or may not be applicable for EMCOR Group Inc.

3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. The lack of data for payables turnover means we are unable to assess how efficiently EMCOR manages its payables.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company generates revenue relative to its working capital. EMCOR's working capital turnover has shown fluctuations, indicating changes in how effectively the company utilizes its working capital to generate sales revenue.

Overall, analyzing these activity ratios helps evaluate how well EMCOR Group Inc manages its assets, inventory, and working capital to drive revenue and profitability.

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Average number of days

Based on the provided data, let's analyze EMCOR Group Inc's activity ratios over the years:

1. Days of Inventory on Hand (DOH):
- The company's DOH has shown some fluctuations over the years, ranging from as low as 1.63 days to as high as 4.15 days.
- Generally, a lower DOH indicates efficient inventory management as the company is able to sell its products quickly.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the DSO data is not available for analysis, which may indicate that the company's sales collection process information is not disclosed or may not be applicable.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is not available, which would have helped in understanding how long the company takes to pay its suppliers.

In conclusion, based on the available DOH data, EMCOR Group Inc has shown some variability in managing its inventory levels efficiently. However, without DSO and payables data, a holistic assessment of the company's overall efficiency in managing its working capital through sales collections and payments to suppliers is limited. It would be beneficial to have a complete set of activity ratios to provide a comprehensive analysis of the company's operational efficiency.

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Long-term

The fixed asset turnover ratio for EMCOR Group Inc has shown some fluctuations over the years. It started at a high of 59.02 in March 2020, then decreased to around 22-25 range in mid-2021 before steadily increasing to 70.90 by March 2023. However, the ratio dropped significantly to 25.36 in September 2023 and remained at zero for the last four quarters.

On the other hand, the total asset turnover ratio demonstrates a more stable trend. It ranged from 1.74 to 1.96 in 2020 and 2021, before showing a slight increase to 2.02 by March 2023. Subsequently, the ratio fluctuated between 1.90 and 2.00 up to December 2024.

Overall, while the total asset turnover ratio remained relatively consistent, the fixed asset turnover ratio displayed more volatility in the earlier years before declining to zero in recent quarters. This suggests a potential decrease in efficiency in utilizing fixed assets to generate sales for EMCOR Group Inc.