EMCOR Group Inc (EME)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,609,720 | 5,524,610 | 5,441,450 | 5,063,840 | 4,830,360 |
| Total stockholders’ equity | US$ in thousands | 2,469,780 | 1,973,590 | 2,252,390 | 2,052,670 | 2,057,130 |
| Financial leverage ratio | 2.68 | 2.80 | 2.42 | 2.47 | 2.35 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,609,720K ÷ $2,469,780K
= 2.68
The financial leverage ratio of Emcor Group, Inc. has displayed fluctuations over the past five years. The ratio indicates the proportion of the company's debt to its equity. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can indicate increased financial risk.
From 2019 to 2020, the financial leverage ratio increased from 2.35 to 2.47, indicating a slight increase in the level of debt compared to equity during that period. However, in 2021, the ratio decreased to 2.42, reflecting a decrease in the company's debt relative to equity.
The ratio then increased in 2022 to 2.80, which suggests a higher level of debt compared to equity, indicating potentially higher financial risk. However, it decreased again in 2023 to 2.68, although still remaining relatively high compared to previous years.
Overall, the trend in Emcor Group's financial leverage ratio shows some fluctuations, with periods of increase and decrease in the level of debt relative to equity. Investors and key stakeholders may want to closely monitor this ratio to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2023