EMCOR Group Inc (EME)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,469,780K
= 0.00
The debt-to-equity ratio of Emcor Group, Inc. has shown a decreasing trend over the past five years, indicating that the company has been gradually reducing its reliance on debt financing in relation to equity. In 2023, the company reported a debt-to-equity ratio of 0.00, which suggests that the company had no debt obligations and relied solely on equity to finance its operations.
In the previous years, the debt-to-equity ratio ranged from 0.12 to 0.15, indicating that the company had a moderate level of debt relative to its equity. The decrease in the ratio from 0.15 in 2019 to 0.00 in 2023 reflects Emcor Group's efforts to strengthen its financial position by reducing its debt levels and potentially improving its creditworthiness.
Overall, a declining debt-to-equity ratio can be seen as a positive sign as it indicates lower financial risk and greater stability for the company. However, it is essential to consider the specific circumstances and industry benchmarks when assessing the significance of this trend in evaluating Emcor Group's financial health.
Peer comparison
Dec 31, 2023