Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. EMCOR Group's annualized net income for the quarter that ended in Dec. 2023 was $846 Mil. EMCOR Group's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $826 Mil. Therefore, EMCOR Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 102.43%.
The historical rank and industry rank for EMCOR Group's Return-on-Tangible-Equity or its related term are showing as below:
EME'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.59 Med: 110.28 Max: 198.67
Current: 96.33
During the past 13 years, EMCOR Group's highest Return-on-Tangible-Equity was 198.67%. The lowest was 26.59%. And the median was 110.28%.
EME's Return-on-Tangible-Equity is ranked better than 91.94% of 1601
companies
in the Construction industry
Industry Median: 7.82
vs EME: 96.33
EMCOR Group Return-on-Tangible-Equity Historical Data
The historical data trend for EMCOR Group's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of EMCOR Group's Return-on-Tangible-Equity
For the Engineering & Construction subindustry, EMCOR Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
EMCOR Group's Return-on-Tangible-Equity Distribution in the Construction Industry
For the Construction industry and Industrials sector, EMCOR Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where EMCOR Group's Return-on-Tangible-Equity falls into.
EMCOR Group Return-on-Tangible-Equity Calculation
EMCOR Group's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
EMCOR Group (NYSE:EME) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
EMCOR Group Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of EMCOR Group's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
EMCOR Group Inc is one of the largest electrical, mechanical, construction, and facilities services firms in the United States. It provides a wide range of services, including the installation of electrical distribution systems, voice & data communication systems, and environmental controls within buildings. The company's services are provided to a broad range of commercial, industrial, utility, and institutional customers. Emcor Group enters contracts for large installation projects in the multimillion-dollar range, or smaller projects involving renovations and retrofit work. It also operates as a subcontractor to general contractors, systems suppliers, and property managers. It generates sales primarily in the United States, but the company does offer services United kingdom.
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