Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Emerson Electric Co., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Emerson Electric Co. net fixed asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Emerson Electric Co. total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Emerson Electric Co. equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Net Fixed Asset Turnover
Emerson Electric Co., net fixed asset turnover 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) | |||||||
| Net sales | 18,372) | 17,408) | 15,264) | 14,522) | 22,304) | 24,537) | |
| Property, plant and equipment, net | 3,642) | 3,562) | 3,321) | 2,931) | 3,585) | 3,802) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 5.04 | 4.89 | 4.60 | 4.95 | 6.22 | 6.45 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Boeing Co. | 6.12 | — | — | — | — | — | |
| Caterpillar Inc. | 3.93 | — | — | — | — | — | |
| Cummins Inc. | 5.55 | — | — | — | — | — | |
| Eaton Corp. plc | 6.12 | — | — | — | — | — | |
| General Electric Co. | 2.02 | — | — | — | — | — | |
| Honeywell International Inc. | 6.89 | — | — | — | — | — | |
| Lockheed Martin Corp. | 9.07 | — | — | — | — | — | |
| RTX Corp. | 6.04 | — | — | — | — | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Capital Goods | 4.29 | — | — | — | — | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Industrials | 2.82 | — | — | — | — | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 18,372 ÷ 3,642 = 5.04
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Emerson Electric Co. net fixed asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Total Asset Turnover
Emerson Electric Co., total asset turnover 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) | |||||||
| Net sales | 18,372) | 17,408) | 15,264) | 14,522) | 22,304) | 24,537) | |
| Total assets | 20,497) | 20,390) | 19,589) | 21,743) | 22,088) | 24,177) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.90 | 0.85 | 0.78 | 0.67 | 1.01 | 1.01 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Boeing Co. | 0.57 | — | — | — | — | — | |
| Caterpillar Inc. | 0.65 | — | — | — | — | — | |
| Cummins Inc. | 1.19 | — | — | — | — | — | |
| Eaton Corp. plc | 0.65 | — | — | — | — | — | |
| General Electric Co. | 0.33 | — | — | — | — | — | |
| Honeywell International Inc. | 0.63 | — | — | — | — | — | |
| Lockheed Martin Corp. | 1.26 | — | — | — | — | — | |
| RTX Corp. | 0.55 | — | — | — | — | — | |
| Total Asset Turnover, Sector | |||||||
| Capital Goods | 0.56 | — | — | — | — | — | |
| Total Asset Turnover, Industry | |||||||
| Industrials | 0.62 | — | — | — | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 18,372 ÷ 20,497 = 0.90
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Emerson Electric Co. total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Equity Turnover
Emerson Electric Co., equity turnover 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) | |||||||
| Net sales | 18,372) | 17,408) | 15,264) | 14,522) | 22,304) | 24,537) | |
| Common stockholders’ equity | 8,233) | 8,947) | 8,718) | 7,568) | 8,081) | 10,119) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 2.23 | 1.95 | 1.75 | 1.92 | 2.76 | 2.42 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 3.48 | — | — | — | — | — | |
| Cummins Inc. | 3.14 | — | — | — | — | — | |
| Eaton Corp. plc | 1.33 | — | — | — | — | — | |
| General Electric Co. | 3.09 | — | — | — | — | — | |
| Honeywell International Inc. | 1.98 | — | — | — | — | — | |
| Lockheed Martin Corp. | 19.13 | — | — | — | — | — | |
| RTX Corp. | 1.84 | — | — | — | — | — | |
| Equity Turnover, Sector | |||||||
| Capital Goods | 3.57 | — | — | — | — | — | |
| Equity Turnover, Industry | |||||||
| Industrials | 3.51 | — | — | — | — | — | |
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
Equity turnover = Net sales ÷ Common stockholders’ equity
= 18,372 ÷ 8,233 = 2.23
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Emerson Electric Co. equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |