When considering companies to do business with, customers look for financial strength. ERC recognizes that
as an engineering, scientific, and technical services provider supporting military and space customers,
the Company must maintain a strong financial disposition to serve its customers in a highly effective and
stable manner.
Financial Growth
ERC believes a company must have a strong financial base to sustain its competitive position. Financial
growth is a core element of the Company that provides that base. ERC’s revenue growth has averaged 18
percent over the last 3 years.
Financial Liquidity and Financial Leverage
Financial liquidity and leverage are core elements to sustain business viability. We believe a company
must maintain the financial capability to meet both short-term and long-term obligations.
As an engineering, scientific, and technical services contractor, ERC requires a significant amount of
short-term working capital to support the needs of our contract base for the payment of materials,
subcontractors and employees, and other operating costs including; temporary surges, and phase–in of
new contracts. ERC’s “Current Ratio”, a financial liquidity ratio that measures the company’s ability
to pay short-term obligations, is in the top tier of companies in the aerospace and defense industry.
The nature of the aerospace and defense industry requires its contractor base to have the ability to
borrow long-term funds to support the needs of its contracts. ERC’s “Debt-to-Equity Ratio”, a measure
of our financial leverage expressed as the relationship between long-term funds provided by creditors
and funds provided by the Company, is in the top tier of companies in the aerospace and defense industry.
Our low debt-to-equity ratio reflects the Company’s conservative financing, ability to borrow, and low risk.
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