EMCOR Group Inc (EME)
Working capital 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 current assets | US$ in thousands | 4,446,970 | 3,461,970 | 3,390,990 | 3,120,940 | 2,659,880 |
| Total current liabilities | US$ in thousands | 3,518,360 | 2,753,520 | 2,361,730 | 2,163,230 | 1,938,610 |
| Working capital turnover | 13.55 | 15.63 | 9.62 | 9.19 | 12.72 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,582,900K ÷ ($4,446,970K – $3,518,360K)
= 13.55
Emcor Group, Inc.'s working capital turnover has exhibited fluctuations over the past five years. The ratio decreased from 12.72 in 2019 to 9.19 in 2020, indicating a decrease in the efficiency of utilizing working capital to generate sales. However, there was an improvement in 2021 with a working capital turnover of 9.62. The ratio then increased significantly to 15.63 in 2022, suggesting a notable enhancement in the company's efficiency in utilizing its working capital. In the most recent year, 2023, Emcor Group, Inc. further improved its working capital turnover to 13.55, indicating that the company successfully generated more revenue relative to its working capital investment. Overall, the upward trend in the working capital turnover ratio over the past two years suggests a positive trajectory in Emcor Group, Inc.'s ability to efficiently convert working capital into sales.
Peer comparison
Dec 31, 2023