EMCOR Group Inc (EME)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,469,780 | 1,973,590 | 2,252,390 | 2,052,670 | 2,057,130 |
| ROE | 25.63% | 20.58% | 17.03% | 6.48% | 15.81% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $632,994K ÷ $2,469,780K
= 25.63%
Emcor Group, Inc.'s return on equity (ROE) has shown a positive trend over the past five years, increasing from 15.81% in 2019 to 25.64% in 2023. This indicates that the company has been generating more profit relative to its shareholders' equity. The steady improvement in ROE signifies that Emcor Group, Inc. has been effectively utilizing its shareholders' investments to generate earnings.
The substantial increase in ROE from 2022 to 2023, jumping from 20.58% to 25.64%, suggests a notable enhancement in the company's profitability and efficiency in generating returns for its shareholders in the most recent year. This improvement could be attributed to various factors such as effective cost management, increased revenue, or better operational performance.
Overall, Emcor Group, Inc.'s increasing ROE trend demonstrates a positive performance in terms of generating returns for its shareholders over the years, reflecting the company's ability to efficiently use its equity to drive profitability and create value for its investors.
Peer comparison
Dec 31, 2023