Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Emerson Electric Co., liquidity ratios
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Emerson Electric Co. current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Emerson Electric Co. quick ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Emerson Electric Co. cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Current Ratio
Emerson Electric Co., current ratio calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 7,139) | 6,619) | 8,252) | 9,960) | 10,049) | 10,867) | |
| Current liabilities | 5,976) | 6,164) | 5,045) | 8,008) | 7,800) | 8,454) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.19 | 1.07 | 1.64 | 1.24 | 1.29 | 1.29 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Boeing Co. | 1.05 | — | — | — | — | — | |
| Caterpillar Inc. | 1.47 | — | — | — | — | — | |
| Cummins Inc. | 1.50 | — | — | — | — | — | |
| Eaton Corp. plc | 1.70 | — | — | — | — | — | |
| General Electric Co. | 1.16 | — | — | — | — | — | |
| Honeywell International Inc. | 1.34 | — | — | — | — | — | |
| Lockheed Martin Corp. | 1.22 | — | — | — | — | — | |
| RTX Corp. | 1.08 | — | — | — | — | — | |
| Current Ratio, Sector | |||||||
| Capital Goods | 1.17 | — | — | — | — | — | |
| Current Ratio, Industry | |||||||
| Industrials | 1.20 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,139 ÷ 5,976 = 1.19
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Emerson Electric Co. current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Quick Ratio
Emerson Electric Co., quick ratio calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 1,494) | 1,093) | 3,062) | 3,182) | 3,054) | 3,149) | |
| Receivables, less allowances | 2,985) | 3,344) | 3,072) | 2,701) | 4,319) | 5,019) | |
| Unbilled receivables (contract assets) | 456) | —) | —) | —) | —) | —) | |
| Total quick assets | 4,935) | 4,437) | 6,134) | 5,883) | 7,373) | 8,168) | |
| Current liabilities | 5,976) | 6,164) | 5,045) | 8,008) | 7,800) | 8,454) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.83 | 0.72 | 1.22 | 0.73 | 0.95 | 0.97 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Boeing Co. | 0.23 | — | — | — | — | — | |
| Caterpillar Inc. | 0.98 | — | — | — | — | — | |
| Cummins Inc. | 0.82 | — | — | — | — | — | |
| Eaton Corp. plc | 0.78 | — | — | — | — | — | |
| General Electric Co. | 0.86 | — | — | — | — | — | |
| Honeywell International Inc. | 0.99 | — | — | — | — | — | |
| Lockheed Martin Corp. | 0.93 | — | — | — | — | — | |
| RTX Corp. | 0.73 | — | — | — | — | — | |
| Quick Ratio, Sector | |||||||
| Capital Goods | 0.65 | — | — | — | — | — | |
| Quick Ratio, Industry | |||||||
| Industrials | 0.71 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,935 ÷ 5,976 = 0.83
2 Click competitor name to see calculations.
| Liquidity 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. quick ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Cash Ratio
Emerson Electric Co., cash ratio calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 1,494) | 1,093) | 3,062) | 3,182) | 3,054) | 3,149) | |
| Total cash assets | 1,494) | 1,093) | 3,062) | 3,182) | 3,054) | 3,149) | |
| Current liabilities | 5,976) | 6,164) | 5,045) | 8,008) | 7,800) | 8,454) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.25 | 0.18 | 0.61 | 0.40 | 0.39 | 0.37 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Boeing Co. | 0.10 | — | — | — | — | — | |
| Caterpillar Inc. | 0.31 | — | — | — | — | — | |
| Cummins Inc. | 0.23 | — | — | — | — | — | |
| Eaton Corp. plc | 0.12 | — | — | — | — | — | |
| General Electric Co. | 0.60 | — | — | — | — | — | |
| Honeywell International Inc. | 0.58 | — | — | — | — | — | |
| Lockheed Martin Corp. | 0.11 | — | — | — | — | — | |
| RTX Corp. | 0.21 | — | — | — | — | — | |
| Cash Ratio, Sector | |||||||
| Capital Goods | 0.31 | — | — | — | — | — | |
| Cash Ratio, Industry | |||||||
| Industrials | 0.34 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,494 ÷ 5,976 = 0.25
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Emerson Electric Co. cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |