EMCOR Group Inc (EME)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.98% | 16.60% | 14.48% | 15.16% | 15.86% |
| Operating profit margin | 9.23% | 6.96% | 5.10% | 5.36% | 5.62% |
| Pretax margin | 9.46% | 6.94% | 5.04% | 5.34% | 2.87% |
| Net profit margin | 6.91% | 5.03% | 3.67% | 3.87% | 1.51% |
EMCOR Group Inc's profitability ratios have shown a generally positive trend over the past five years. The gross profit margin has been fluctuating, starting at 15.86% in 2020, dipping to 14.48% in 2022, and then rising significantly to 18.98% by the end of 2024, indicating an improvement in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin has gradually increased from 5.62% in 2020 to 9.23% in 2024, reflecting improved operational efficiency and cost management. The pretax margin has also shown a steady growth trajectory, starting at 2.87% in 2020 and reaching 9.46% by the end of 2024, indicating the company's ability to generate higher profits before accounting for taxes.
The net profit margin, which is a key indicator of a company's overall profitability, has shown a significant improvement over the period, increasing from 1.51% in 2020 to 6.91% in 2024. This trend suggests that EMCOR Group Inc has been effectively managing its expenses and increasing its bottom-line profitability.
Overall, the consistent improvement in EMCOR Group Inc's profitability ratios demonstrates the company's strong performance and effective financial management strategies over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.43% | 13.25% | 10.22% | 9.75% | 9.77% |
| Return on assets (ROA) | 13.05% | 9.58% | 7.35% | 7.05% | 2.63% |
| Return on total capital | 47.02% | 36.04% | 29.07% | 23.73% | 24.10% |
| Return on equity (ROE) | 34.28% | 25.63% | 20.58% | 17.03% | 6.48% |
Based on the provided data, EMCOR Group Inc's profitability ratios show positive trends over the five-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased from 9.77% in 2020 to 17.43% in 2024.
- This indicates that EMCOR Group Inc's operating income generated from its assets improved substantially over the years, reflecting efficient asset utilization.
2. Return on Assets (ROA):
- The ROA also saw a significant increase from 2.63% in 2020 to 13.05% in 2024.
- This indicates that EMCOR Group Inc's overall profitability in relation to its total assets improved, showing better overall financial performance.
3. Return on Total Capital:
- The Return on Total Capital increased from 24.10% in 2020 to 47.02% in 2024.
- This demonstrates that the company efficiently utilized both equity and debt capital to generate returns for its stakeholders.
4. Return on Equity (ROE):
- The ROE increased from 6.48% in 2020 to 34.28% in 2024.
- This signifies that EMCOR Group Inc was able to enhance shareholder value over the years through better profitability earned on the shareholders' equity.
Overall, the improving trend in all profitability ratios reflects EMCOR Group Inc's ability to effectively manage its assets, capital structure, and equity to generate higher returns for its investors. It suggests that the company has been successful in enhancing its financial performance and creating value for its stakeholders over the five-year period.