EMCOR Group Inc (EME)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,566,100 | 12,582,900 | 11,076,100 | 9,903,580 | 8,797,060 |
| Total current assets | US$ in thousands | 5,389,190 | 4,446,970 | 3,461,970 | 3,390,990 | 3,120,940 |
| Total current liabilities | US$ in thousands | 4,153,860 | 3,518,360 | 2,753,520 | 2,361,730 | 2,163,230 |
| Working capital turnover | 11.79 | 13.55 | 15.63 | 9.62 | 9.19 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,566,100K ÷ ($5,389,190K – $4,153,860K)
= 11.79
EMCOR Group Inc's working capital turnover has shown an increasing trend over the past five years. The ratio was 9.19 on December 31, 2020, and improved to 9.62 by December 31, 2021. The trend continued with significant growth, reaching 15.63 by December 31, 2022, indicating that the company is generating sales revenue efficiently relative to its working capital. However, there was a slight decrease in the ratio to 13.55 by December 31, 2023, which may suggest a temporary slowdown in sales turnover efficiency. By the end of December 31, 2024, the ratio stood at 11.79, still above the initial values but slightly lower compared to the peak in 2022. Overall, EMCOR Group Inc has shown a strong ability to efficiently utilize its working capital to generate sales revenue, despite some fluctuations in recent years. Further analysis of the underlying factors impacting this ratio would provide more insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024