EMCOR Group Inc (EME)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 460,892 | 451,722 | 448,645 | 429,488 |
| Long-term debt | US$ in thousands | — | — | — | 100,000 | 0 | 170,000 | — | — | 0 | — | — | — | 0 | 0 | 0 | 200,000 | 50,000 | 0 | 25,000 | 25,000 |
| Total stockholders’ equity | US$ in thousands | 2,469,780 | 2,278,930 | 2,117,380 | 2,065,620 | 1,973,590 | 1,841,720 | 1,952,090 | 2,135,100 | 2,252,390 | 2,141,350 | 2,090,480 | 2,119,970 | 2,052,670 | 2,007,290 | 1,943,620 | 2,026,950 | 2,057,130 | 1,975,160 | 1,894,180 | 1,810,770 |
| Return on total capital | 35.46% | 33.51% | 32.06% | 28.62% | 28.62% | 26.38% | 26.54% | 24.06% | 23.57% | 24.54% | 25.06% | 12.63% | 12.51% | 12.06% | 11.42% | 20.86% | 21.87% | 22.87% | 23.38% | 23.40% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $875,756K ÷ ($—K + $2,469,780K)
= 35.46%
Emcor Group, Inc.'s return on total capital has shown a consistent upward trend over the past eight quarters, indicating improved efficiency in generating returns from its total capital employed. The company's return on total capital has increased steadily from 21.44% in Q1 2022 to 35.48% in Q4 2023. This positive trend suggests that Emcor Group, Inc. is effectively utilizing its capital to generate profits and create value for its stakeholders. Overall, the company's ability to generate higher returns on its total capital over time reflects a strong financial performance and efficient capital allocation strategy.
Peer comparison
Dec 31, 2023