EMCOR Group Inc (EME)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2.96 | 2.97 | 3.35 | 3.82 | 3.85 | 4.15 | 3.90 | 3.78 | 3.30 | 4.04 | 3.82 | 3.01 | 2.35 | 2.92 | 3.04 | 2.38 | 2.63 | 1.90 | 1.94 | 1.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 2.96 | 2.97 | 3.35 | 3.82 | 3.85 | 4.15 | 3.90 | 3.78 | 3.30 | 4.04 | 3.82 | 3.01 | 2.35 | 2.92 | 3.04 | 2.38 | 2.63 | 1.90 | 1.94 | 1.63 |
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 some fluctuations over the periods provided. The cash conversion cycle represents the time taken by a company to convert its investments in raw materials and other components into cash from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its inventory into cash quickly.
From March 31, 2020, to September 30, 2021, the cash conversion cycle remained relatively stable, ranging from 1.63 days to 2.92 days. However, there was a noticeable increase to 4.04 days by September 30, 2022, indicating that the company may have faced challenges in managing its working capital efficiently or experienced delays in converting inventory into cash.
Subsequently, the cash conversion cycle decreased slightly but remained elevated above the previous levels, fluctuating between 2.35 days to 4.15 days from December 31, 2021, to September 30, 2023. This suggests the company may have made efforts to improve its working capital management but was still facing some challenges in the process.
By December 31, 2024, the cash conversion cycle decreased to 2.96 days, indicating potential improvements in working capital management compared to the peaks observed in previous periods. Overall, EMCOR Group Inc should continue to monitor and optimize its cash conversion cycle to enhance its operational efficiency and financial performance.
Peer comparison
Dec 31, 2024