EMCOR Group Inc (EME)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,609,720 | 6,224,190 | 5,907,670 | 5,640,910 | 5,524,610 | 5,438,730 | 5,146,440 | 5,231,150 | 5,441,450 | 5,296,680 | 5,133,170 | 5,061,190 | 5,063,840 | 4,829,980 | 4,590,420 | 4,835,550 | 4,830,360 | 4,532,720 | 4,393,580 | 4,278,320 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,057,130 | 1,975,160 | 1,894,180 | 1,810,770 |
| Financial leverage ratio | 2.68 | 2.73 | 2.79 | 2.73 | 2.80 | 2.95 | 2.64 | 2.45 | 2.42 | 2.47 | 2.46 | 2.39 | 2.47 | 2.41 | 2.36 | 2.39 | 2.35 | 2.29 | 2.32 | 2.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,609,720K ÷ $2,469,780K
= 2.68
The financial leverage ratio measures the extent to which a company is utilizing debt to finance its operations and growth. Emcor Group, Inc.'s financial leverage ratio has exhibited fluctuations over the past eight quarters, ranging from a low of 2.45 in Q1 2022 to a high of 2.95 in Q3 2022.
The trend in the financial leverage ratio indicates that the company has been relying more on debt financing in recent quarters, as seen in the upward trend from Q1 2022 to Q3 2022. This increased leverage could be a strategic decision to take advantage of favorable interest rates or to fund expansion initiatives.
However, it is noteworthy that there was a slight decrease in the financial leverage ratio from Q3 2022 to Q4 2022, followed by variations in subsequent quarters. The fluctuations in the ratio suggest that the company may be actively managing its debt levels based on its financial needs and market conditions.
Overall, the financial leverage ratio of Emcor Group, Inc. has shown variability over the analyzed period, indicating a dynamic approach to capital structure management. Potential factors influencing this ratio could include strategic decisions regarding debt utilization, investment opportunities, and overall risk management strategies.
Peer comparison
Dec 31, 2023