EMCOR Group Inc (EME)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,582,900 | 11,076,100 | 9,903,580 | 8,797,060 | 9,174,610 |
| Total assets | US$ in thousands | 6,609,720 | 5,524,610 | 5,441,450 | 5,063,840 | 4,830,360 |
| Total asset turnover | 1.90 | 2.00 | 1.82 | 1.74 | 1.90 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,582,900K ÷ $6,609,720K
= 1.90
Emcor Group, Inc.'s total asset turnover has exhibited some fluctuations over the past five years. The total asset turnover ratio measures how efficiently the company generates sales or revenue from its total assets.
In 2023, Emcor Group, Inc. had a total asset turnover of 1.90, indicating that the company generated $1.90 in revenue for every $1 of assets it holds. This ratio decreased slightly from the previous year, where it was 2.00, implying a slight decrease in efficiency in asset utilization in 2023 compared to 2022.
Over the five-year period, the total asset turnover ratio has ranged from 1.74 to 2.00. The company's ability to generate revenue from its assets has been relatively consistent, with the ratio largely staying within a narrow range.
A higher total asset turnover ratio typically indicates better efficiency in asset utilization, reflecting that the company is effectively using its assets to generate sales. Conversely, a lower ratio may suggest inefficiencies in asset management or lower sales generated from the assets.
In conclusion, while Emcor Group, Inc. has shown some fluctuations in its total asset turnover ratio over the past five years, the company has generally maintained a consistent level of efficiency in generating revenue from its total assets.
Peer comparison
Dec 31, 2023