EMCOR Group Inc (EME)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.26 | 1.29 | 1.34 | 1.26 | 1.28 | 1.30 | 1.40 | 1.44 | 1.43 | 1.45 | 1.48 | 1.44 | 1.46 | 1.48 | 1.50 | 1.37 | 1.43 | 1.42 | 1.38 |
| Quick ratio | 1.13 | 1.11 | 1.14 | 1.16 | 1.10 | 1.10 | 1.12 | 1.23 | 1.28 | 1.26 | 1.29 | 1.34 | 1.31 | 1.32 | 1.34 | 1.34 | 1.23 | 1.28 | 1.27 | 1.22 |
| Cash ratio | 0.22 | 0.16 | 0.17 | 0.16 | 0.17 | 0.15 | 0.11 | 0.22 | 0.35 | 0.30 | 0.31 | 0.36 | 0.42 | 0.34 | 0.27 | 0.19 | 0.19 | 0.21 | 0.13 | 0.15 |
The current ratio of Emcor Group, Inc. has been relatively stable over the past eight quarters, ranging between 1.26 and 1.34. This indicates that the company has a moderate ability to cover its short-term obligations with its current assets.
Similarly, the quick ratio also shows a consistent trend, varying between 1.22 and 1.30 over the same period. This ratio considers only the most liquid assets to cover short-term liabilities, indicating a slightly lower level of liquidity compared to the current ratio.
In contrast, the cash ratio has shown more variability, fluctuating between 0.25 and 0.37 over the last two years. This ratio reflects the company's ability to cover its current liabilities with its cash and cash equivalents alone, showing a lower level of liquidity compared to both the current and quick ratios.
Overall, Emcor Group, Inc. has maintained a reasonable liquidity position based on these ratios, with the current and quick ratios suggesting a solid ability to meet its short-term obligations, while the cash ratio indicates a more conservative liquidity position. It is important for investors and stakeholders to monitor these ratios over time to assess any significant changes in the company's liquidity position.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 64.22 | 67.03 | 63.71 | 62.16 | 55.18 | 59.40 | 59.42 | 55.23 | 51.70 | 57.47 | 56.34 | 56.05 | 49.25 | 52.54 | 53.57 | 54.91 | 51.62 | 52.16 | 54.68 | 50.70 |
The cash conversion cycle of Emcor Group, Inc. has shown some fluctuations over the past eight quarters. The cycle represents the time it takes for the company to convert its investments in inventory to cash flows from sales.
In Q4 2023, the cash conversion cycle was 64.22 days, which decreased from the previous quarter. However, compared to Q4 2022, there has been an increase in the cycle. This indicates that the company took longer to convert its investments in inventory to cash flows from sales in Q4 2023 compared to the same period in the previous year.
Overall, the cash conversion cycle has been relatively stable, with occasional fluctuations seen over the eight quarters analyzed. Emcor Group, Inc. should continue to monitor and manage its working capital efficiently to optimize its cash conversion cycle and improve its overall financial health.