EMCOR Group Inc (EME)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,381,604 | 1,245,659 | 1,116,820 | 980,176 | 874,637 | 768,525 | 684,945 | 627,298 | 573,788 | 534,887 | 522,097 | 517,639 | 534,425 | 530,521 | 529,334 | 273,134 | 262,028 | 246,224 | 225,331 | 467,783 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,937,660 | 2,758,080 | 2,744,560 | 2,614,340 | 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 |
| Return on total capital | 47.03% | 45.16% | 40.69% | 37.49% | 35.41% | 33.72% | 32.35% | 30.37% | 29.07% | 29.04% | 26.75% | 24.24% | 23.73% | 24.78% | 25.32% | 12.88% | 12.77% | 12.27% | 11.59% | 23.08% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,381,604K ÷ ($—K + $2,937,660K)
= 47.03%
The return on total capital for EMCOR Group Inc has shown a positive trend over the past few years, indicating efficient utilization of its capital resources. The ratio has improved consistently from 23.08% as of March 31, 2020, to 47.03% as of December 31, 2024. This suggests that the company has been able to generate higher returns relative to the total capital employed in its operations.
The steady increase in the return on total capital reflects the company's ability to drive profitability and create value for its stakeholders. A rising trend in this ratio is generally viewed positively by investors and analysts as it signifies improving operational efficiency and financial performance.
Overall, the upward trajectory of EMCOR Group Inc's return on total capital demonstrates effective capital allocation and management practices, which have contributed to the company's financial health and sustainability.
Peer comparison
Dec 31, 2024