EMCOR Group Inc (EME)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,469,780K)
= 0.00
The debt-to-capital ratio of Emcor Group, Inc. has shown a decreasing trend over the past five years. At the end of 2023, the company reported a debt-to-capital ratio of 0.00, indicating that the company had no debt as a percentage of its total capital. This marks a significant improvement compared to the previous year when the ratio was 0.11.
The decreasing trend in the debt-to-capital ratio suggests that Emcor Group, Inc. has been reducing its reliance on debt to finance its operations and investments. A lower debt-to-capital ratio generally signifies a lower financial risk and greater financial stability for the company.
Overall, the declining debt-to-capital ratio of Emcor Group, Inc. reflects a favorable trend in the company's capital structure and financial health, indicating effective management of debt levels. It also suggests that the company may be utilizing other forms of financing or generating sufficient internal funds to support its growth strategies.
Peer comparison
Dec 31, 2023