EMCOR Group Inc (EME)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.60% | 14.48% | 15.16% | 15.86% | 14.78% |
| Operating profit margin | 6.96% | 5.10% | 5.36% | 2.92% | 5.02% |
| Pretax margin | 6.93% | 5.04% | 5.34% | 2.87% | 4.91% |
| Net profit margin | 5.03% | 3.67% | 3.87% | 1.51% | 3.54% |
Emcor Group, Inc. has shown consistent improvement in its profitability ratios over the years, as indicated by its gross profit margin, operating profit margin, pretax margin, and net profit margin.
The gross profit margin has gradually increased from 14.78% in 2019 to 16.60% in 2023, reflecting the company's ability to effectively manage its cost of goods sold and generate higher profit on its revenues.
Similarly, the operating profit margin has shown a positive trend, rising from 5.04% in 2019 to 6.98% in 2023. This indicates that Emcor Group has been able to control its operating expenses more efficiently and improve its profitability from core business operations.
The pretax margin has also exhibited steady growth, reaching 6.94% in 2023 from 4.91% in 2019. This metric reflects the company's ability to generate more profit before accounting for taxes, demonstrating improved operational efficiency and financial performance.
Furthermore, the net profit margin has significantly increased over the years, from 3.54% in 2019 to 5.03% in 2023. This indicates that Emcor Group has been successful in enhancing its bottom line profitability by effectively managing its tax obligations and other financial factors.
Overall, the improving trend in Emcor Group's profitability ratios suggests that the company has been successful in enhancing its overall financial performance and efficiency in generating profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.25% | 10.22% | 9.75% | 5.07% | 9.54% |
| Return on assets (ROA) | 9.58% | 7.35% | 7.05% | 2.63% | 6.73% |
| Return on total capital | 36.02% | 28.98% | 23.76% | 12.73% | 22.05% |
| Return on equity (ROE) | 25.63% | 20.58% | 17.03% | 6.48% | 15.81% |
Emcor Group, Inc.'s profitability ratios indicate a positive trend over the past five years. The operating return on assets (Operating ROA) has shown improvement, increasing from 9.57% in 2019 to 13.29% in 2023. This suggests that the company has been able to generate more operating income relative to its assets over time.
The return on assets (ROA) has also exhibited a positive trend, with a significant improvement from 2.63% in 2020 to 9.58% in 2023. This indicates that Emcor Group, Inc. has become more efficient in generating profits from its total assets.
Moreover, the return on total capital has shown a consistent increase over the years, reaching 35.48% in 2023. This suggests that the company has been able to deliver higher returns to both equity and debt holders.
The return on equity (ROE) has also demonstrated a positive trajectory, increasing from 15.81% in 2019 to 25.64% in 2023. This indicates that Emcor Group, Inc. has been successful in generating higher returns for its shareholders.
Overall, the improving profitability ratios of Emcor Group, Inc. reflect the company's ability to efficiently utilize its assets and generate profits, thus enhancing shareholder value.