EMCOR Group Inc (EME)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 889,717 | 571,949 | 535,205 | 261,335 | 464,710 |
| Long-term debt | US$ in thousands | — | 0 | 0 | 0 | 50,000 |
| Total stockholders’ equity | US$ in thousands | 2,469,780 | 1,973,590 | 2,252,390 | 2,052,670 | 2,057,130 |
| Return on total capital | 36.02% | 28.98% | 23.76% | 12.73% | 22.05% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $889,717K ÷ ($—K + $2,469,780K)
= 36.02%
Emcor Group, Inc.'s return on total capital has shown a consistent upward trend over the past five years. The company's return on total capital increased from 19.52% in 2019 to 35.48% in 2023, reflecting an improvement in the company's ability to generate profits from its total capital employed. This steady increase indicates that Emcor Group is effectively utilizing its total capital to generate returns for its shareholders. The company's performance in 2023, with a return on total capital of 35.48%, surpasses the levels seen in previous years, showcasing a strong performance and efficiency in capital allocation. This trend suggests that Emcor Group has been successful in driving profitability and creating value for its stakeholders over the years.
Peer comparison
Dec 31, 2023