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.

Common-Size Balance Sheet: Assets 

Emerson Electric Co., common-size consolidated balance sheet: assets

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Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Cash and equivalents 7.29 5.36 15.63 14.63 13.83 13.02
Receivables, less allowances 14.56 16.40 15.68 12.42 19.55 20.76
Inventories 9.17 8.89 8.66 5.56 8.36 8.51
Unbilled receivables (contract assets) 2.22 0.00 0.00 0.00 0.00 0.00
Other 1.58 1.81 2.15 13.20 3.75 2.66
Other current assets 3.81% 1.81% 2.15% 13.20% 3.75% 2.66%
Current assets 34.83% 32.46% 42.13% 45.81% 45.50% 44.95%
Property, plant and equipment, net 17.77 17.47 16.95 13.48 16.23 15.73
Goodwill 31.89 31.66 27.14 17.98 30.12 29.71
Other intangible assets 12.76 13.49 9.65 4.15 6.91 6.99
Pension assets 0.80 2.90 1.01 0.00 0.00 0.00
Asbestos-related insurance receivables 0.56 0.61 0.68 0.00 0.00 0.00
Deferred income taxes 0.47 0.36 0.44 0.00 0.00 0.00
Other 0.92 1.05 2.01 18.59 1.25 2.63
Other noncurrent assets 2.76% 4.92% 4.13% 18.59% 1.25% 2.63%
Other assets 47.40% 50.07% 40.92% 40.71% 38.27% 39.33%
Noncurrent assets 65.17% 67.54% 57.87% 54.19% 54.50% 55.05%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The analysis of the asset composition over the six-year period reveals several notable trends and shifts in the allocation of total assets.

Cash and equivalents
This category showed a steady increase from 13.02% in 2014 to a peak of 15.63% in 2017, followed by a sharp decline to 5.36% in 2018 and a slight recovery to 7.29% in 2019. This pattern suggests a possible strategic reallocation or increased cash utilization starting in 2018.
Receivables, less allowances
The proportion of receivables decreased overall, dropping from 20.76% in 2014 to 14.56% in 2019. A significant dip was observed in 2016 when it fell to 12.42%, after which it partially recovered but remained below the initial levels, indicating tighter credit policies or improved collection processes.
Inventories
Inventory levels remained relatively stable, fluctuating modestly between 5.56% and 9.17%, with a noticeable low in 2016. The stability suggests consistent inventory management across the period.
Unbilled receivables (contract assets)
Data is only available for 2019, where it accounted for 2.22%. The introduction of this asset type could be related to changes in revenue recognition standards or evolving contract practices.
Other current assets
This category showed volatility, notably peaking at 13.2% in 2016 before falling to low single digits in other years. This spike in 2016 may reflect an atypical accumulation or reclassification of current assets during that period.
Current assets
The total current assets as a percentage of total assets trended downward, declining from approximately 45% in 2014-2016 to around 33% by 2018-2019, indicating a shift toward greater investment in noncurrent assets or changes in operational financing.
Property, plant and equipment, net
This asset component showed a general upward trend from 15.73% in 2014 to 17.77% in 2019, with fluctuations in the interim years. This suggests moderate reinvestment in fixed assets, reflecting ongoing capital expenditure or asset growth.
Goodwill
Goodwill as a percentage of total assets experienced significant volatility. It dropped markedly from 30.12% in 2015 to 17.98% in 2016 and then rose again to about 31.89% by 2019. These changes likely correspond to acquisition and impairment activities affecting the carrying amount of intangible goodwill.
Other intangible assets
There was a general increase in this category from 4.15% in 2016 to a peak of 13.49% in 2018, followed by a slight decrease in 2019. The rise aligns with the increase in goodwill and may also relate to acquisitions or valuation adjustments of intangible properties.
Pension assets
Data from 2017 onward shows modest pension asset balances ranging between 0.8% and 2.9%, indicating some level of capitalization or underfunding adjustments within pension plans.
Asbestos-related insurance receivables
Present only from 2017, these receivables represented a small and slightly decreasing portion of assets around 0.5–0.68%, reflecting ongoing management of legacy liabilities.
Deferred income taxes
This category remained minimal and relatively stable in the latter years, hovering just below 0.5%, suggesting consistent tax asset recognition policies.
Other noncurrent assets
Excluding a sharp increase in 2016 to 18.59%, other noncurrent assets generally accounted for between 0.9% and 4.9%, indicating that the 2016 figure was an outlier likely due to asset reclassification or a one-time event.
Noncurrent assets
Noncurrent assets grew steadily as a proportion of total assets from 55.05% in 2014 to a peak of 67.54% in 2018, with a slight decrease to 65.17% in 2019. This shift highlights a gradual emphasis on long-term asset holdings over current assets in the company’s asset base.
Total assets
The composition of total assets remained stable in aggregate (100%), as expected, but the internal distribution reveals a strategic shift toward noncurrent asset accumulation and decreased reliance on current assets, particularly cash and equivalents.