EMCOR Group Inc (EME)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,381,160 | 890,052 | 573,788 | 534,425 | 494,778 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,937,660 | 2,469,780 | 1,973,590 | 2,252,390 | 2,052,670 |
| Return on total capital | 47.02% | 36.04% | 29.07% | 23.73% | 24.10% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,381,160K ÷ ($—K + $2,937,660K)
= 47.02%
The return on total capital for EMCOR Group Inc has shown a positive trend over the years based on the provided data. The ratio increased from 24.10% as of December 31, 2020, to 47.02% as of December 31, 2024. This signifies an improvement in the company's ability to generate returns from its total invested capital. The consistent growth in return on total capital indicates effective asset utilization and profitability management by EMCOR Group Inc. Overall, the increasing trend in this ratio reflects positively on the company's performance and efficiency in generating returns for its capital providers.
Peer comparison
Dec 31, 2024