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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 Income Statement
Quarterly Data

Emerson Electric Co., common-size consolidated income statement (quarterly data)

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3 months ended: Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -57.95 -57.62 -57.19 -57.28 -57.88 -57.54 -57.75 -56.26 -57.04 -57.52 -59.32 -58.46 -56.44 -57.56 -56.43 -56.64 -56.92 -57.63 -59.27 -59.40 -59.89 -59.19 -57.56 -58.21 -58.79 -60.11
Gross profit 42.05% 42.38% 42.81% 42.72% 42.12% 42.46% 42.25% 43.74% 42.96% 42.48% 40.68% 41.54% 43.56% 42.44% 43.57% 43.36% 43.08% 42.37% 40.73% 40.60% 40.11% 40.81% 42.44% 41.79% 41.21% 39.89%
Selling, general and administrative expenses -23.62 -27.05 -22.31 -24.04 -25.05 -25.97 -24.14 -23.65 -24.29 -26.00 -22.48 -23.05 -24.29 -25.56 -21.74 -23.19 -24.53 -26.34 -20.38 -23.19 -24.41 -25.15 -21.35 -22.56 -23.98 -25.76
Gain on sale of business 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.84 0.00 17.26 0.00 0.00 0.00 0.00 0.00
Goodwill impairment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -7.46 0.00 0.00 0.00
Other deductions, net -1.01 -4.29 -3.08 -1.39 -1.25 -1.21 -2.07 -1.97 -2.33 -2.31 -1.87 -2.15 -2.32 -1.03 -3.43 -1.06 -1.84 -1.62 -4.28 -2.22 -2.52 -1.15 -0.95 -1.52 -2.36 -1.69
Earnings from continuing operations before interest and income taxes 17.42% 11.03% 17.42% 17.29% 15.82% 15.29% 16.04% 18.11% 16.34% 14.18% 16.32% 16.34% 16.96% 15.86% 18.39% 19.11% 16.71% 14.41% 17.91% 15.19% 30.44% 14.52% 12.68% 17.71% 14.87% 12.43%
Interest income 0.14 0.14 0.16 0.15 0.15 0.12 0.16 0.22 0.33 0.29 0.25 0.25 0.25 0.19 0.15 0.19 0.22 0.18 0.07 0.16 0.17 0.13 0.09 0.11 0.07 0.12
Interest expense -1.01 -0.99 -0.97 -1.07 -1.20 -1.16 -1.10 -1.10 -1.18 -1.28 -1.13 -1.21 -1.40 -1.62 -1.40 -1.44 -1.51 -1.59 -0.84 -0.89 -0.91 -0.95 -0.78 -0.84 -0.88 -1.09
Interest expense, net of interest income -0.86% -0.84% -0.80% -0.92% -1.05% -1.04% -0.94% -0.88% -0.85% -1.00% -0.88% -0.97% -1.15% -1.43% -1.25% -1.25% -1.29% -1.41% -0.77% -0.73% -0.74% -0.82% -0.69% -0.73% -0.81% -0.96%
Earnings from continuing operations before income taxes 16.55% 10.19% 16.62% 16.37% 14.77% 14.25% 15.10% 17.24% 15.49% 13.18% 15.45% 15.38% 15.81% 14.43% 17.14% 17.86% 15.42% 13.01% 17.13% 14.46% 29.70% 13.69% 11.99% 16.98% 14.06% 11.47%
Income taxes -3.96 -2.26 -2.05 -3.31 -3.28 -2.99 -2.37 -1.10 -3.98 -2.86 -4.13 -5.00 -5.06 -2.92 -4.78 -5.58 -4.95 -3.81 -5.93 -4.03 -11.57 -4.22 -5.89 -5.29 -4.53 -2.96
Earnings from continuing operations 12.59% 7.93% 14.56% 13.07% 11.49% 11.26% 12.73% 16.14% 11.51% 10.32% 11.32% 10.37% 10.74% 11.50% 12.36% 12.28% 10.48% 9.20% 11.20% 10.43% 18.13% 9.47% 6.10% 11.69% 9.53% 8.51%
Discontinued operations, net of tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.18 0.15 -2.35 -1.71 -1.04 1.03 0.06 1.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net earnings 12.59% 7.93% 14.56% 13.07% 11.49% 11.26% 12.73% 16.14% 11.51% 10.32% 11.50% 10.52% 8.39% 9.79% 11.32% 13.31% 10.53% 10.58% 11.20% 10.43% 18.13% 9.47% 6.10% 11.69% 9.53% 8.51%
Noncontrolling interests in earnings of subsidiaries -0.17 -0.07 -0.14 -0.17 -0.11 -0.05 -0.10 -0.16 -0.16 -0.05 -0.14 -0.30 -0.22 -0.19 -0.18 -0.27 -0.22 -0.12 -0.05 -0.18 -0.11 -0.07 -0.07 -0.16 -0.12 -0.27
Net earnings common stockholders 12.42% 7.85% 14.42% 12.89% 11.38% 11.21% 12.62% 15.98% 11.35% 10.27% 11.36% 10.23% 8.17% 9.61% 11.14% 13.04% 10.31% 10.46% 11.15% 10.25% 18.02% 9.40% 6.02% 11.53% 9.41% 8.24%

Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).

The common-size income statement reveals a general improvement in gross profit margins over the analyzed period, characterized by periodic volatility in operating expenses and the impact of significant non-recurring items.

Gross Profitability Trends
Gross profit margins demonstrated a gradual upward trajectory, rising from 39.89% in December 2013 to a peak of 43.74% in June 2018. This improvement was driven by a reduction in the cost of sales, which decreased from approximately 60% of net sales in late 2013 to a more stabilized range between 56% and 58% throughout most of 2016 to 2020.
Operating Expense Patterns
Selling, general, and administrative (SG&A) expenses exhibit a distinct seasonal pattern, with consistent spikes occurring every December. These year-end expenses frequently exceed 25% of net sales, whereas expenses in other quarters typically fluctuate between 20% and 24%. This cyclicality suggests periodic year-end adjustments or seasonal operational costs.
Impact of Non-Recurring Items
Earnings were significantly influenced by one-time events. A goodwill impairment charge representing 7.46% of net sales in September 2014 created a temporary contraction in profitability. Conversely, a substantial gain on the sale of business in March 2015, amounting to 17.26% of net sales, resulted in a sharp increase in earnings from continuing operations, which peaked at 30.44% for that quarter.
Interest and Tax Obligations
Net interest expenses remained relatively stable, generally fluctuating between 0.69% and 1.43% of net sales. Income tax expenses as a percentage of sales showed higher variability, ranging from a low of 1.10% in June 2018 to a high of 11.57% in March 2015, the latter being correlated with the aforementioned gain on the sale of business.
Net Earnings Performance
Net earnings attributable to common stockholders remained largely positive, typically oscillating between 8% and 14% of net sales. A peak margin of 15.98% was achieved in June 2018, while a notable decline to 7.85% was recorded in December 2019, coinciding with a period of elevated SG&A expenses and other deductions.

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