Stock Analysis on Net
Stock Analysis on Net

Emerson Electric Co. (NYSE:EMR)

This company has been moved to the archive! The financial data has not been updated since April 24, 2020.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2020 28.79% = 9.97% × 2.89
Dec 31, 2019 25.73% = 10.27% × 2.51
Sep 30, 2019 28.01% = 11.25% × 2.49
Jun 30, 2019 25.20% = 10.35% × 2.43
Mar 31, 2019 27.14% = 10.98% × 2.47
Dec 31, 2018 27.63% = 11.14% × 2.48
Sep 30, 2018 24.62% = 10.80% × 2.28
Jun 30, 2018 24.84% = 10.20% × 2.44
Mar 31, 2018 21.09% = 9.05% × 2.33
Dec 31, 2017 19.18% = 8.06% × 2.38
Sep 30, 2017 17.41% = 7.75% × 2.25
Jun 30, 2017 18.23% = 7.48% × 2.44
Mar 31, 2017 18.96% = 8.79% × 2.16
Dec 31, 2016 20.68% = 9.13% × 2.27
Sep 30, 2016 21.60% = 7.52% × 2.87
Jun 30, 2016 23.35% = 8.36% × 2.79
Mar 31, 2016 25.09% = 8.87% × 2.83
Dec 31, 2015 33.99% = 11.76% × 2.89
Sep 30, 2015 33.54% = 12.27% × 2.73
Jun 30, 2015 28.25% = 10.54% × 2.68
Mar 31, 2015 29.56% = 11.48% × 2.58
Dec 31, 2014 23.23% = 9.32% × 2.49
Sep 30, 2014 21.22% = 8.88% × 2.39
Jun 30, 2014 — = — × 2.32
Mar 31, 2014 — = — × 2.32
Dec 31, 2013 — = — × 2.25

Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2020 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2020 28.79% = 12.04% × 0.83 × 2.89
Dec 31, 2019 25.73% = 11.79% × 0.87 × 2.51
Sep 30, 2019 28.01% = 12.55% × 0.90 × 2.49
Jun 30, 2019 25.20% = 12.06% × 0.86 × 2.43
Mar 31, 2019 27.14% = 12.81% × 0.86 × 2.47
Dec 31, 2018 27.63% = 12.83% × 0.87 × 2.48
Sep 30, 2018 24.62% = 12.66% × 0.85 × 2.28
Jun 30, 2018 24.84% = 12.33% × 0.83 × 2.44
Mar 31, 2018 21.09% = 10.83% × 0.84 × 2.33
Dec 31, 2017 19.18% = 10.09% × 0.80 × 2.38
Sep 30, 2017 17.41% = 9.94% × 0.78 × 2.25
Jun 30, 2017 18.23% = 9.84% × 0.76 × 2.44
Mar 31, 2017 18.96% = 10.54% × 0.83 × 2.16
Dec 31, 2016 20.68% = 11.08% × 0.82 × 2.27
Sep 30, 2016 21.60% = 11.26% × 0.67 × 2.87
Jun 30, 2016 23.35% = 11.25% × 0.74 × 2.79
Mar 31, 2016 25.09% = 10.59% × 0.84 × 2.83
Dec 31, 2015 33.99% = 12.64% × 0.93 × 2.89
Sep 30, 2015 33.54% = 12.15% × 1.01 × 2.73
Jun 30, 2015 28.25% = 10.61% × 0.99 × 2.68
Mar 31, 2015 29.56% = 10.94% × 1.05 × 2.58
Dec 31, 2014 23.23% = 9.01% × 1.03 × 2.49
Sep 30, 2014 21.22% = 8.75% × 1.01 × 2.39
Jun 30, 2014 — = — × — × 2.32
Mar 31, 2014 — = — × — × 2.32
Dec 31, 2013 — = — × — × 2.25

Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2020 is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Emerson Electric Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2020 28.79% = 0.81 × 0.94 × 15.92% × 0.83 × 2.89
Dec 31, 2019 25.73% = 0.81 × 0.93 × 15.57% × 0.87 × 2.51
Sep 30, 2019 28.01% = 0.81 × 0.93 × 16.54% × 0.90 × 2.49
Jun 30, 2019 25.20% = 0.80 × 0.93 × 16.17% × 0.86 × 2.43
Mar 31, 2019 27.14% = 0.84 × 0.93 × 16.38% × 0.86 × 2.47
Dec 31, 2018 27.63% = 0.83 × 0.93 × 16.55% × 0.87 × 2.48
Sep 30, 2018 24.62% = 0.83 × 0.93 × 16.36% × 0.85 × 2.28
Jun 30, 2018 24.84% = 0.80 × 0.93 × 16.50% × 0.83 × 2.44
Mar 31, 2018 21.09% = 0.73 × 0.93 × 16.04% × 0.84 × 2.33
Dec 31, 2017 19.18% = 0.70 × 0.92 × 15.60% × 0.80 × 2.38
Sep 30, 2017 17.41% = 0.70 × 0.92 × 15.59% × 0.78 × 2.25
Jun 30, 2017 18.23% = 0.69 × 0.91 × 15.74% × 0.76 × 2.44
Mar 31, 2017 18.96% = 0.69 × 0.91 × 16.64% × 0.83 × 2.16
Dec 31, 2016 20.68% = 0.71 × 0.91 × 17.17% × 0.82 × 2.27
Sep 30, 2016 21.60% = 0.70 × 0.92 × 17.54% × 0.67 × 2.87
Jun 30, 2016 23.35% = 0.68 × 0.93 × 17.73% × 0.74 × 2.79
Mar 31, 2016 25.09% = 0.69 × 0.93 × 16.49% × 0.84 × 2.83
Dec 31, 2015 33.99% = 0.66 × 0.95 × 20.21% × 0.93 × 2.89
Sep 30, 2015 33.54% = 0.65 × 0.95 × 19.45% × 1.01 × 2.73
Jun 30, 2015 28.25% = 0.62 × 0.95 × 17.86% × 0.99 × 2.68
Mar 31, 2015 29.56% = 0.62 × 0.95 × 18.42% × 1.05 × 2.58
Dec 31, 2014 23.23% = 0.64 × 0.94 × 14.90% × 1.03 × 2.49
Sep 30, 2014 21.22% = 0.65 × 0.94 × 14.38% × 1.01 × 2.39
Jun 30, 2014 — = — × — × — × — × 2.32
Mar 31, 2014 — = — × — × — × — × 2.32
Dec 31, 2013 — = — × — × — × — × 2.25

Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2020 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Emerson Electric Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2020 9.97% = 12.04% × 0.83
Dec 31, 2019 10.27% = 11.79% × 0.87
Sep 30, 2019 11.25% = 12.55% × 0.90
Jun 30, 2019 10.35% = 12.06% × 0.86
Mar 31, 2019 10.98% = 12.81% × 0.86
Dec 31, 2018 11.14% = 12.83% × 0.87
Sep 30, 2018 10.80% = 12.66% × 0.85
Jun 30, 2018 10.20% = 12.33% × 0.83
Mar 31, 2018 9.05% = 10.83% × 0.84
Dec 31, 2017 8.06% = 10.09% × 0.80
Sep 30, 2017 7.75% = 9.94% × 0.78
Jun 30, 2017 7.48% = 9.84% × 0.76
Mar 31, 2017 8.79% = 10.54% × 0.83
Dec 31, 2016 9.13% = 11.08% × 0.82
Sep 30, 2016 7.52% = 11.26% × 0.67
Jun 30, 2016 8.36% = 11.25% × 0.74
Mar 31, 2016 8.87% = 10.59% × 0.84
Dec 31, 2015 11.76% = 12.64% × 0.93
Sep 30, 2015 12.27% = 12.15% × 1.01
Jun 30, 2015 10.54% = 10.61% × 0.99
Mar 31, 2015 11.48% = 10.94% × 1.05
Dec 31, 2014 9.32% = 9.01% × 1.03
Sep 30, 2014 8.88% = 8.75% × 1.01
Jun 30, 2014 — = — × —
Mar 31, 2014 — = — × —
Dec 31, 2013 — = — × —

Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2020 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Emerson Electric Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2020 9.97% = 0.81 × 0.94 × 15.92% × 0.83
Dec 31, 2019 10.27% = 0.81 × 0.93 × 15.57% × 0.87
Sep 30, 2019 11.25% = 0.81 × 0.93 × 16.54% × 0.90
Jun 30, 2019 10.35% = 0.80 × 0.93 × 16.17% × 0.86
Mar 31, 2019 10.98% = 0.84 × 0.93 × 16.38% × 0.86
Dec 31, 2018 11.14% = 0.83 × 0.93 × 16.55% × 0.87
Sep 30, 2018 10.80% = 0.83 × 0.93 × 16.36% × 0.85
Jun 30, 2018 10.20% = 0.80 × 0.93 × 16.50% × 0.83
Mar 31, 2018 9.05% = 0.73 × 0.93 × 16.04% × 0.84
Dec 31, 2017 8.06% = 0.70 × 0.92 × 15.60% × 0.80
Sep 30, 2017 7.75% = 0.70 × 0.92 × 15.59% × 0.78
Jun 30, 2017 7.48% = 0.69 × 0.91 × 15.74% × 0.76
Mar 31, 2017 8.79% = 0.69 × 0.91 × 16.64% × 0.83
Dec 31, 2016 9.13% = 0.71 × 0.91 × 17.17% × 0.82
Sep 30, 2016 7.52% = 0.70 × 0.92 × 17.54% × 0.67
Jun 30, 2016 8.36% = 0.68 × 0.93 × 17.73% × 0.74
Mar 31, 2016 8.87% = 0.69 × 0.93 × 16.49% × 0.84
Dec 31, 2015 11.76% = 0.66 × 0.95 × 20.21% × 0.93
Sep 30, 2015 12.27% = 0.65 × 0.95 × 19.45% × 1.01
Jun 30, 2015 10.54% = 0.62 × 0.95 × 17.86% × 0.99
Mar 31, 2015 11.48% = 0.62 × 0.95 × 18.42% × 1.05
Dec 31, 2014 9.32% = 0.64 × 0.94 × 14.90% × 1.03
Sep 30, 2014 8.88% = 0.65 × 0.94 × 14.38% × 1.01
Jun 30, 2014 — = — × — × — × —
Mar 31, 2014 — = — × — × — × —
Dec 31, 2013 — = — × — × — × —

Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2020 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Emerson Electric Co., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2020 12.04% = 0.81 × 0.94 × 15.92%
Dec 31, 2019 11.79% = 0.81 × 0.93 × 15.57%
Sep 30, 2019 12.55% = 0.81 × 0.93 × 16.54%
Jun 30, 2019 12.06% = 0.80 × 0.93 × 16.17%
Mar 31, 2019 12.81% = 0.84 × 0.93 × 16.38%
Dec 31, 2018 12.83% = 0.83 × 0.93 × 16.55%
Sep 30, 2018 12.66% = 0.83 × 0.93 × 16.36%
Jun 30, 2018 12.33% = 0.80 × 0.93 × 16.50%
Mar 31, 2018 10.83% = 0.73 × 0.93 × 16.04%
Dec 31, 2017 10.09% = 0.70 × 0.92 × 15.60%
Sep 30, 2017 9.94% = 0.70 × 0.92 × 15.59%
Jun 30, 2017 9.84% = 0.69 × 0.91 × 15.74%
Mar 31, 2017 10.54% = 0.69 × 0.91 × 16.64%
Dec 31, 2016 11.08% = 0.71 × 0.91 × 17.17%
Sep 30, 2016 11.26% = 0.70 × 0.92 × 17.54%
Jun 30, 2016 11.25% = 0.68 × 0.93 × 17.73%
Mar 31, 2016 10.59% = 0.69 × 0.93 × 16.49%
Dec 31, 2015 12.64% = 0.66 × 0.95 × 20.21%
Sep 30, 2015 12.15% = 0.65 × 0.95 × 19.45%
Jun 30, 2015 10.61% = 0.62 × 0.95 × 17.86%
Mar 31, 2015 10.94% = 0.62 × 0.95 × 18.42%
Dec 31, 2014 9.01% = 0.64 × 0.94 × 14.90%
Sep 30, 2014 8.75% = 0.65 × 0.94 × 14.38%
Jun 30, 2014 — = — × — × —
Mar 31, 2014 — = — × — × —
Dec 31, 2013 — = — × — × —

Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).

The primary reason for the increase in net profit margin ratio over Q2 2020 is the increase in operating profitability measured by EBIT margin ratio.