EMCOR Group Inc (EME)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 875,756 | 564,877 | 530,800 | 256,834 | 460,892 |
| Total assets | US$ in thousands | 6,609,720 | 5,524,610 | 5,441,450 | 5,063,840 | 4,830,360 |
| Operating ROA | 13.25% | 10.22% | 9.75% | 5.07% | 9.54% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $875,756K ÷ $6,609,720K
= 13.25%
Operating Return on Assets (Operating ROA) measures the company's ability to generate profits from its operating activities relative to its total assets. Emcor Group, Inc. has shown a consistent improvement in its operating ROA over the past five years, increasing from 9.57% in 2019 to 13.29% in 2023.
This upward trend indicates that Emcor Group, Inc. has been effectively utilizing its assets to generate operating profits. The higher the operating ROA, the more efficient the company is in generating profits from its operating activities in relation to the assets it holds.
The improvement in operating ROA reflects positively on the company's operational efficiency and management effectiveness in utilizing its assets to generate profits. Emcor Group, Inc.'s ability to consistently increase its operating ROA over the years suggests sound operational performance and effective asset management strategies.
Overall, the increasing trend in Emcor Group, Inc.'s operating ROA demonstrates its strength in generating profits from its core operations relative to the assets deployed, indicating favorable operational performance and efficiency.
Peer comparison
Dec 31, 2023