EMCOR Group Inc (EME)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,716,470 | 7,321,950 | 7,072,550 | 6,687,330 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,937,660 | 2,758,080 | 2,744,560 | 2,614,340 | 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 |
| Financial leverage ratio | 2.63 | 2.65 | 2.58 | 2.56 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,716,470K ÷ $2,937,660K
= 2.63
The financial leverage ratio of EMCOR Group Inc has shown some fluctuation over the past few years. It stood at around 2.4 in 2020 and 2021, indicating that the company had a moderate level of financial leverage during these periods. However, there was a noticeable increase in the ratio in the latter part of 2022, reaching a peak of 2.95 by September 30, 2022. This surge in financial leverage suggests that EMCOR Group Inc may have taken on more debt to finance its operations or investments.
Subsequently, the financial leverage ratio decreased slightly in the following quarters but remained elevated compared to the earlier years. The ratio stabilized around 2.6 by the end of 2024, indicating that EMCOR Group Inc had managed to moderate its financial leverage after the peak observed in 2022. It is essential for the company to closely monitor its leverage ratio to ensure that it remains at a sustainable level and does not pose excessive financial risk.
Peer comparison
Dec 31, 2024