EMCOR Group (EMCOR Group) Interest Coverage

: 22.98 (As of Dec. 2023)

View and export this data going back to 1994. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. EMCOR Group's Operating Income for the three months ended in Dec. 2023 was $289 Mil. EMCOR Group's Interest Expense for the three months ended in Dec. 2023 was $-13 Mil. EMCOR Group's interest coverage for the quarter that ended in Dec. 2023 was 22.98. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. EMCOR Group Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for EMCOR Group's Interest Coverage or its related term are showing as below:

EME' s Interest Coverage Range Over the Past 10 Years
Min: 24.61 Med: 32.85 Max: 87.43
Current: 51.06

EME's Interest Coverage is ranked better than
78.78% of 1263 companies
in the Construction industry
Industry Median: 7.1 vs EME: 51.06

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

EMCOR Group Interest Coverage Historical Data

The historical data trend for EMCOR Group's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

EMCOR Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

33.46

54.59

87.43

42.80

51.06

EMCOR Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																25.44	84.56	73.06	2,637.03	22.98

Competitive Comparison

For the Engineering & Construction subindustry, EMCOR Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Construction industry and Industrials sector, EMCOR Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where EMCOR Group's Interest Coverage falls into.

EMCOR Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

EMCOR Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, EMCOR Group's Interest Expense was $-17 Mil. Its Operating Income was $878 Mil. And its Long-Term Debt & Capital Lease Obligation was $262 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	878.106	/	-17.199
	=	51.06

EMCOR Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, EMCOR Group's Interest Expense was $-13 Mil. Its Operating Income was $289 Mil. And its Long-Term Debt & Capital Lease Obligation was $262 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	289.196	/	-12.585
	=	22.98

The higher the ratio, the stronger the company's Financial Strength is.

EMCOR Group (NYSE:EME) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

EMCOR Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of EMCOR Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

EMCOR Group (EMCOR Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » EMCOR Group Inc (NYSE:EME) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

EM4:Germany

Address

301 Merritt Seven, Norwalk, CT, USA, 06851-1092

Website

https://www.emcorgroup.com

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.

Executives

R Kevin Matz	officer: SVP, Admin & Strategic Service	301 MERRITT SEVEN 6TH FLOOR, NORWALK CT 06851
Anthony Guzzi	officer: President & COO	301 MERRITT SEVEN, 6TH FLOOR, NORWALK CT 06851
Mark A Pompa	officer: SVP, CAO & Treasurer	301 MERRITT SEVEN 6TH FLOOR, NORWALK CT 06851
Maxine Lum Mauricio	officer: SVP and General Counsel	301 MERRITT SEVEN CORPORATE PARK, 6TH FL, C/O EMCOR GROUP INC., NORWALK CT 06851
Jason R Nalbandian	officer: SVP & Chief Accounting Officer	301 MERRITT SEVEN CORPORATE PARK, 6TH FL, C/O EMCOR GROUP, INC., NORWALK CT 06851
Rebecca A Weyenberg	director	1725 SHEPHERD RD, CHATTANOOGA TN 37421
Carol P Lowe	director	4311 BEULAH CHURCH ROAD, WEDDINGTON NC 28104
M Kevin Mcevoy	director	C/O OCEANEERING INTERNATIONAL INC, 11911 FM 529, HOUSTON TX 77041-3011
William P Reid	director	301 MERRITT SEVEN CORPORATE PARK, 6TH FL, C/O EMCOR GROUP, INC., NORWALK CT 06851
Hamm Richard F Jr	director	6370 OXBOW BEND, CHANHASSEN MN 55317
Ronald L Johnson	director	3344 PEACHTREE STREET NE, #3403, ATLANTA GA 30326
John W Altmeyer	director	946 HIGHMEADOW COURT, LANCASTER PA 17601
Brown David A B	director
Robin A Walker-lee	director	C/O TRW AUTOMOTIVE, 12001 TECH CENTER DRIVE, LIVONIA MI 48150
Jerry E Ryan	director	3201 EAST 65TH, TULSA OK 74136