EMCOR Group Inc (EME)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.02 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.01 | 0.00 | 0.01 | 0.01 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.05 | 0.00 | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.02 | 0.00 | 0.01 | 0.01 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.05 | 0.00 | 0.09 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 | 0.02 | 0.00 | 0.01 | 0.01 |
| 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 |
The solvency ratios of Emcor Group, Inc. provide insights into the company's ability to meet its long-term obligations and manage its debt levels effectively.
1. Debt-to-assets ratio:
- Emcor Group, Inc. consistently maintains a low debt-to-assets ratio, which indicates a conservative financial position.
- The ratio has been decreasing over the quarters, reaching 0.00 in Q4 2023, reflecting that the company's assets are mostly financed through equity rather than debt.
2. Debt-to-capital ratio:
- The trend in the debt-to-capital ratio shows a decreasing pattern over the quarters, indicating the company's reduced reliance on debt to fund its operations.
- Emcor Group, Inc. has managed to maintain the ratio below 0.15 in the recent quarters, suggesting a healthy balance between debt and capital contributions.
3. Debt-to-equity ratio:
- Emcor Group, Inc. has also shown a declining trend in the debt-to-equity ratio, reflecting a lower level of debt relative to shareholders' equity.
- The company's ratio has consistently been below 0.20, signaling a strong equity base supporting its operations.
4. Financial leverage ratio:
- The financial leverage ratio of Emcor Group, Inc. has fluctuated over the quarters but generally remained within a reasonable range.
- Despite some variation, the ratio has stayed around 2.5 to 3.0, indicating that the company uses a moderate level of financial leverage to support its operations.
Overall, based on the solvency ratios, Emcor Group, Inc. appears to have a solid financial position with prudent debt management practices, a healthy mix of debt and equity, and a moderate level of financial leverage to sustain its operations and growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 51.46 | 88.42 | 56.94 | 56.45 | 54.12 | 63.63 | 80.54 | 85.67 | 87.43 | 97.82 | 94.06 | 42.09 | 34.30 | 12.37 | 12.20 | 24.05 | 23.45 | 46.76 | 34.13 | 32.12 |
Emcor Group, Inc.'s interest coverage ratio has shown fluctuations over the past eight quarters. The Q4 2023 interest coverage ratio of 492.21 indicates that the company is currently generating significantly more income to cover its interest expenses, reflecting a strong financial position. This is a substantial improvement compared to the previous quarters where the interest coverage ratio ranged between 54.12 and 101.77.
The Q3 and Q2 2023 figures of 86.88 and 56.94, respectively, demonstrate a decrease in the ability to cover interest payments compared to the earlier quarters. However, it is noted that the interest coverage in Q3 2023 increased from the preceding quarter, indicating a positive trend in the company's ability to cover interest expenses.
Overall, Emcor Group, Inc. has shown varying levels of interest coverage over the analyzed period, with Q4 2023 standing out as exceptionally strong. It is essential for the company to sustain or enhance this high interest coverage ratio to ensure its ability to meet interest obligations and maintain financial stability.