EMCOR Group Inc (EME)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of EMCOR Group Inc indicate a consistently strong financial position with low levels of debt relative to its assets, capital, and equity. The Debt-to-Assets ratio, Debt-to-Capital ratio, and Debt-to-Equity ratio have all remained at 0.00 over the analyzed period, suggesting that the company's debt levels are negligible compared to its total assets, capital, and equity.
The Financial Leverage ratio, which measures the extent to which the company is using debt to finance its operations, has fluctuated slightly but has generally remained relatively stable around the range of 2.39 to 2.95. This indicates that EMCOR Group Inc has maintained a moderate level of financial leverage, which is not excessive and has not posed a significant risk to the company's solvency.
Overall, based on the solvency ratios provided, EMCOR Group Inc appears to have a robust financial position with solid capacity to meet its financial obligations and sustain its operations without relying heavily on debt financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 62.92 | 36.06 | 42.43 | 42.79 | 50.85 | 87.15 | 57.45 | 57.13 | 54.97 | 64.14 | 81.17 | 86.32 | 88.03 | 98.78 | 95.05 | 42.93 | 34.99 | 27.65 | 22.31 | 41.69 |
EMCOR Group Inc's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio is an important financial metric that indicates a company's ability to meet its interest obligations with its operating income.
Starting at a robust level of 41.69 in March 2020, the interest coverage ratio declined to 22.31 in June 2020, suggesting a potential strain on EMCOR's ability to cover its interest expenses comfortably. However, the ratio improved gradually over the following quarters, reaching peaks of 98.78 in September 2021 and 88.03 in December 2021, indicating a strong ability to cover interest payments with operating income.
Although the interest coverage ratio decreased in the subsequent periods, showing values such as 57.13 in March 2023 and 36.06 in September 2024, these levels still suggest EMCOR Group Inc's ability to meet its interest obligations through its earnings. The ratio rebounded to 62.92 in December 2024, signaling an improvement in the company's capacity to cover interest expenses.
In conclusion, EMCOR Group Inc's interest coverage ratio has shown some variability over the analyzed period but generally indicates a consistent ability to cover its interest payments with operating income. However, it is essential for the company to monitor this ratio closely and ensure that it remains at a sustainable level to maintain financial health.