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Emerson Electric Co. (EMR) | Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

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Emerson Electric Co., liquidity ratios

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    Sep 30, 2011 Sep 30, 2010 Sep 30, 2009 Sep 30, 2008 Sep 30, 2007 Sep 30, 2006
chart Current ratio
chart Quick ratio
chart Cash ratio

Source: Based on data from Emerson Electric Co. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Emerson Electric Co.'s current ratio deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Emerson Electric Co.'s quick ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 not reaching 2009 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Emerson Electric Co.'s cash ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level.

Current Ratio

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    Sep 30, 2011 Sep 30, 2010 Sep 30, 2009 Sep 30, 2008 Sep 30, 2007 Sep 30, 2006
  Selected Financial Data (USD $ in millions)
chart Current assets
chart Current liabilities
  Current Ratio, Comparison to Industry
chart Emerson Electric Co.1
  Industry, Industrials

Source: Based on data from Emerson Electric Co. Annual Reports

2011 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Emerson Electric Co.'s current ratio deteriorated from 2009 to 2010 but then slightly improved from 2010 to 2011.

Quick Ratio

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    Sep 30, 2011 Sep 30, 2010 Sep 30, 2009 Sep 30, 2008 Sep 30, 2007 Sep 30, 2006
  Selected Financial Data (USD $ in millions)
chart Cash and equivalents
chart Receivables, less allowances
chart Total quick assets
chart Current liabilities
  Quick Ratio, Comparison to Industry
chart Emerson Electric Co.1
  Industry, Industrials

Source: Based on data from Emerson Electric Co. Annual Reports

2011 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Emerson Electric Co.'s quick ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 not reaching 2009 level.

Cash Ratio

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    Sep 30, 2011 Sep 30, 2010 Sep 30, 2009 Sep 30, 2008 Sep 30, 2007 Sep 30, 2006
  Selected Financial Data (USD $ in millions)
chart Cash and equivalents
chart Total cash assets
chart Current liabilities
  Cash Ratio, Comparison to Industry
chart Emerson Electric Co.1
  Industry, Industrials

Source: Based on data from Emerson Electric Co. Annual Reports

2011 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Emerson Electric Co.'s cash ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level.

May 23, 2012

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