EMCOR Group Inc (EME)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 632,994 | 406,122 | 383,532 | 132,943 | 325,140 |
| Total assets | US$ in thousands | 6,609,720 | 5,524,610 | 5,441,450 | 5,063,840 | 4,830,360 |
| ROA | 9.58% | 7.35% | 7.05% | 2.63% | 6.73% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $632,994K ÷ $6,609,720K
= 9.58%
Emcor Group, Inc.'s return on assets (ROA) has demonstrated variability in recent years. The ROA rose from 6.73% in 2019 to 7.05% in 2021, indicating an improvement in the company's ability to generate profits from its assets. However, the ROA experienced a significant increase to 9.58% in 2023, reflecting a notable enhancement in efficiency in utilizing its assets to generate earnings.
This increase in ROA suggests that Emcor Group, Inc. has effectively optimized the utilization of its assets to generate higher profits compared to the preceding years. It indicates a positive performance trend and may signify improved operational efficiency, better asset management, or higher revenue generation relative to the size of its asset base.
Overall, the increasing trend in ROA indicates the company's ability to generate more profits from its assets over time, suggesting potentially improved financial performance and management efficiency.
Peer comparison
Dec 31, 2023