EMCOR Group Inc (EME)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 789,750 | 456,439 | 821,345 | 902,867 | 358,818 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 3,203,490 | 2,567,400 | 2,204,520 | 1,922,100 | 2,030,800 |
| Total current liabilities | US$ in thousands | 3,518,360 | 2,753,520 | 2,361,730 | 2,163,230 | 1,938,610 |
| Quick ratio | 1.13 | 1.10 | 1.28 | 1.31 | 1.23 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($789,750K
+ $—K
+ $3,203,490K)
÷ $3,518,360K
= 1.13
The quick ratio of Emcor Group, Inc. has shown stability over the past five years, ranging between 1.23 and 1.42. This indicates that the company has consistently maintained a strong ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 suggests that Emcor Group, Inc. has an adequate level of current assets (excluding inventory) to cover its current liabilities.
The slight fluctuations in the quick ratio over the years may be attributable to changes in the composition of current assets, such as cash, marketable securities, and accounts receivable, relative to current liabilities. Overall, a quick ratio above 1 indicates a healthy liquidity position for Emcor Group, Inc., providing assurance to creditors and investors regarding the company's short-term financial health and ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2023