Emerson Electric Co. (NYSE:EMR)

Land

The value of land showed a decline from 2014 to 2016, decreasing from 275 million to 210 million USD. Following this period, there was a consistent upward trend, reaching 336 million USD by 2019, indicating renewed investment or appreciation in land assets within the latter years.

Buildings

Building assets experienced a downward trend between 2014 and 2016, decreasing from 2,355 million USD to 1,867 million USD. From 2017 onward, there was a gradual recovery, with values increasing to 2,219 million USD by 2019, though not fully regaining earlier levels. This suggests some level of divestment or depreciation in the earlier years followed by reinvestment or capital improvements.

Machinery and Equipment

This category displayed a consistent decrease from 6,353 million USD in 2014 to a low of 4,932 million USD in 2016. After 2016, the value began to stabilize and then increase, reaching 5,645 million USD in 2019. This pattern indicates possible asset disposals or accelerated depreciation initially and subsequent asset acquisition or upgrades in later years.

Construction in Progress

Construction in progress values declined moderately from 428 million USD in 2014 to 318 million USD in 2016. Then, a steady increase occurred through 2019, reaching 471 million USD. This upward trend may reflect increased capital projects underway in the latter periods.

Property, Plant, and Equipment at Cost

The total cost of property, plant, and equipment showed a marked decrease from 9,411 million USD in 2014 to 7,327 million USD in 2016. Post-2016, there was a steady increase, rising to 8,671 million USD by 2019. This mirrors the individual categorizations and indicates a period of reduced capital investment or asset sales until 2016, followed by renewed investment activities.

Accumulated Depreciation

Accumulated depreciation steadily increased in absolute value from -5,609 million USD in 2014 to -5,029 million USD in 2019, reflecting ongoing depreciation expenses. The rate of increase was more pronounced from 2015 to 2016, then moderated from 2017 onward, consistent with the trends observed in asset values.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment exhibited a declining trend from 3,802 million USD in 2014 to 2,931 million USD in 2016. Subsequently, there was an upward recovery to 3,642 million USD in 2019. This pattern suggests that despite depreciation and asset disposals causing declines in the earlier period, asset additions and reduced disposals in later years contributed to net asset value recovery.

The analysis of the property, plant, and equipment data over the six-year period reveals a relatively stable profile in terms of asset aging and useful life estimations.

Average Age Ratio

The average age ratio of the assets remains fairly consistent, fluctuating slightly around 60%, starting at 61.39% in 2014, peaking marginally to 61.77% in 2016, and then slightly decreasing to 60.34% by 2019. This indicates that on average, a little over 60% of the estimated useful life of the assets had been consumed each year, reflecting steady asset utilization without significant aging acceleration or deceleration.

Estimated Total Useful Life

The estimated total useful life of the assets remains mostly constant at 18 years, with the sole exception of 2015 where it briefly decreased to 17 years. This suggests a stable asset lifespan assumption throughout the reported period, indicating consistent maintenance or replacement policies and unchanged asset class composition.

Estimated Age

The estimated age of the assets consistently holds steady at 11 years in each year, reflecting that the assets' average age does not change significantly year to year, perhaps implying ongoing asset additions that offset the aging effect.

Estimated Remaining Life

The estimated remaining life remains constant at 7 years across all years, which supports the observation of stability in asset age and useful life estimates.

Overall, the property's plant and equipment profile appears stable with no significant alterations in asset aging or useful life assumptions, indicating a consistent asset management strategy over the examined period.

Property, Plant, and Equipment at Cost

The cost of property, plant, and equipment experienced a general decline from 2014 to 2016, dropping from $9,411 million to $7,327 million. This was followed by a gradual increase, reaching $8,671 million in 2019. The lowest point in 2016 suggests a period of asset disposals or lower capital expenditure, while the gradual rise afterward indicates renewed investment in tangible fixed assets.

Accumulated Depreciation

Accumulated depreciation declined from $5,609 million in 2014 to a low of $4,396 million in 2016, mirroring the reduction in total asset cost. After 2016, it increased steadily, reaching $5,029 million by 2019. This pattern reflects the aging of assets and depreciation charges consistent with the changes in asset base.

Land

The value of land assets showed a consistent upward trend over the entire period, increasing from $275 million in 2014 to $336 million in 2019. This suggests ongoing acquisitions or revaluations of land holdings despite the fluctuations in other fixed asset categories.

Average Age Ratio

The average age ratio remained fairly stable, fluctuating narrowly between 59.7% and 61.8% throughout the period. A slight downward trend after 2016 indicates a modest renewal of the asset base, balancing older assets with newer additions.

Property, Plant, and Equipment, at Cost

The value of property, plant, and equipment at cost showed a decreasing trend from 2014 to 2016, declining from US$ 9,411 million to US$ 7,327 million. After 2016, there was a consistent recovery with gradual increases, reaching US$ 8,671 million by 2019. This suggests an initial asset disposal or lower capital expenditure followed by renewed investment or asset acquisitions.

Land

The value of land assets declined from US$ 275 million in 2014 to US$ 210 million in 2016, mirroring the overall reduction in total property, plant, and equipment. From 2016 onward, land values increased steadily, reaching US$ 336 million by 2019. This upward trend after 2016 indicates renewed acquisition or revaluation of land holdings.

Depreciation Expense

Depreciation expense showed a consistent decline from US$ 518 million in 2014 to US$ 391 million in 2016, followed by a gradual increase to US$ 463 million in 2019. This pattern aligns with the changes in asset base, reflecting lower depreciation charges during the period of reduced asset values and an increase as asset values recovered.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment remained relatively stable over the years, fluctuating slightly between 17 and 18 years. This stability suggests that the asset aging profile or management’s depreciation policy did not change significantly during the period.

The analysis of the provided property, plant, and equipment data reveals several notable trends over the six-year period ending September 30, 2019.

Accumulated Depreciation

The accumulated depreciation values exhibit a non-linear trend. There is a decrease from US$5,609 million in 2014 to US$4,396 million in 2016, followed by a steady increase reaching US$5,029 million in 2019. This dip and subsequent rise suggest fluctuations in asset base adjustments, disposals, or changes in depreciation policies during the early part of the period, with a recovery phase thereafter.

Depreciation Expense

The annual depreciation expense shows a declining trend from US$518 million in 2014 to a low of US$391 million in 2016, then gradually rising to US$463 million in 2019. This pattern parallels the accumulated depreciation trend, indicating that lower depreciation charges were recorded during the mid-period, with expenses recovering toward the end. This could reflect variations in asset acquisition timing, write-offs, or amortization schedules.

Time Elapsed Since Purchase

The time elapsed since purchase remains constant at 11 years throughout the entire six-year period. This constancy suggests a fixed depreciation timeframe or an accounting policy that standardizes the age of assets for depreciation calculations rather than reflecting actual asset aging.

Overall, the data depict a period of reduced depreciation charges and accumulated depreciation between 2014 and 2016, succeeded by a gradual increase thereafter. The steady elapsed time since purchase denotes a uniform depreciation lifespan assumption. These observations may imply changes in asset management or accounting approaches during the cycle under review.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment exhibited a declining trend from 2014 to 2016, decreasing from 3802 million USD to 2931 million USD. Following this period, a recovery is observable with a consistent increase through 2019, reaching 3642 million USD. This pattern suggests an initial period of asset reduction or disposal, followed by reinvestment or acquisitions.

Land

The land asset value consistently increased over the six-year period, rising from 275 million USD in 2014 to 336 million USD in 2019. This steady growth indicates an ongoing acquisition or appreciation of land assets, contributing positively to the total asset base.

Depreciation Expense

Depreciation expense decreased notably from 518 million USD in 2014 to 391 million USD in 2016, then gradually increased each subsequent year to reach 463 million USD in 2019. This trend corresponds with the earlier decrease and later recovery in net property, plant, and equipment values, reflecting changes in the asset base and aging of assets.

Estimated Remaining Life

The estimated remaining life of the assets remained constant at 7 years throughout the period, indicating stable assumptions regarding asset longevity and usage for depreciation purposes.