EMCOR Group Inc (EME)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2.96 | 3.85 | 3.30 | 2.35 | 2.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 2.96 | 3.85 | 3.30 | 2.35 | 2.63 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.96 + — – —
= 2.96
The cash conversion cycle of EMCOR Group Inc has shown fluctuations over the past five years. In December 2020, the company's cash conversion cycle was 2.63 days, indicating a relatively efficient management of working capital. The following year, the cycle improved slightly to 2.35 days, suggesting an even more efficient conversion of inventory into cash.
However, in December 2022, EMCOR Group Inc experienced a significant increase in its cash conversion cycle to 3.30 days, which may indicate potential challenges in managing its operating cycle. This trend continued in December 2023, with the cycle further increasing to 3.85 days, highlighting a possible slowdown in converting resources into cash.
Fortunately, by December 2024, EMCOR Group Inc was able to reduce its cash conversion cycle to 2.96 days, indicating a partial recovery in managing working capital efficiently. Overall, the fluctuations in the cash conversion cycle suggest varying levels of effectiveness in managing the company's operating cycle and working capital requirements over the five-year period.
Peer comparison
Dec 31, 2024