EMCOR Group Inc (EME)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,344,863 | 1,245,495 | 1,116,940 | 980,799 | 875,756 | 763,742 | 678,853 | 619,830 | 564,877 | 530,712 | 518,039 | 513,753 | 530,800 | 525,405 | 523,839 | 267,843 | 256,834 | 242,086 | 221,980 | 464,577 |
| Total assets | US$ in thousands | 7,716,470 | 7,321,950 | 7,072,550 | 6,687,330 | 6,609,720 | 6,224,190 | 5,907,670 | 5,640,910 | 5,524,610 | 5,438,730 | 5,146,440 | 5,231,150 | 5,441,450 | 5,296,680 | 5,133,170 | 5,061,190 | 5,063,840 | 4,829,980 | 4,590,420 | 4,835,550 |
| Operating ROA | 17.43% | 17.01% | 15.79% | 14.67% | 13.25% | 12.27% | 11.49% | 10.99% | 10.22% | 9.76% | 10.07% | 9.82% | 9.75% | 9.92% | 10.20% | 5.29% | 5.07% | 5.01% | 4.84% | 9.61% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,344,863K ÷ $7,716,470K
= 17.43%
Operating return on assets (Operating ROA) is a financial ratio that measures a company's ability to generate operating profits from its assets. For EMCOR Group Inc, the operating ROA has shown a generally increasing trend over the reported periods from March 31, 2020, to December 31, 2024. The ratio started at 9.61% in March 2020 and increased steadily to reach 17.43% by December 31, 2024.
The improvement in the operating ROA indicates that EMCOR Group Inc has been able to enhance its operating efficiency and profitability in relation to its asset base over the years. A rising operating ROA suggests that the company is effectively utilizing its assets to generate operating income. This could be a result of factors such as improved operational performance, cost management, revenue growth, or strategic initiatives.
Investors and stakeholders often view a higher operating ROA favorably as it indicates a company's ability to generate profits from its operational activities relative to its asset investments. However, it is important to complement the analysis of operating ROA with other financial metrics and qualitative factors to assess the overall financial health and performance of EMCOR Group Inc.
Peer comparison
Dec 31, 2024