EMCOR Group Inc (EME)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,716,470 | 6,609,720 | 5,524,610 | 5,441,450 | 5,063,840 |
| Total stockholders’ equity | US$ in thousands | 2,937,660 | 2,469,780 | 1,973,590 | 2,252,390 | 2,052,670 |
| Financial leverage ratio | 2.63 | 2.68 | 2.80 | 2.42 | 2.47 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,716,470K ÷ $2,937,660K
= 2.63
Based on the data provided, EMCOR Group Inc's financial leverage ratio has shown some fluctuations over the past five years. The financial leverage ratio, which measures the proportion of debt in the company's capital structure, was 2.47 as of December 31, 2020. It then decreased slightly to 2.42 by December 31, 2021, indicating a lower reliance on debt for financing.
However, in the following years, the financial leverage ratio started to increase. By December 31, 2022, it reached 2.80, showing a higher level of debt relative to equity. This trend continued in 2023 and 2024, with the ratios being 2.68 and 2.63 respectively.
Overall, the variations in EMCOR Group Inc's financial leverage ratio suggest that the company has been adjusting its capital structure over time, possibly to manage its debt levels or capture opportunities for growth. Investors and stakeholders may monitor these changes to assess the company's financial risk and solvency.
Peer comparison
Dec 31, 2024