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: Liabilities and Stockholders’ Equity

Emerson Electric Co., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Short-term borrowings and current maturities of long-term debt 7.04 7.96 4.40 11.88 11.56 10.20
Accounts payable 9.14 9.53 9.07 6.98 10.68 12.21
Employee compensation 2.96 3.08 2.71 1.98 2.70 2.92
Customer advances (contract liabilities) 2.53 2.22 2.58 1.99 2.04 1.88
Product warranty 0.68 0.61 0.61 0.49 0.76 0.80
Other 6.80 6.83 6.39 13.51 7.58 6.97
Accrued expenses 12.97% 12.74% 12.29% 17.97% 13.08% 12.57%
Current liabilities 29.16% 30.23% 25.75% 36.83% 35.31% 34.97%
Long-term debt, excluding current maturities 20.87 15.38 19.37 18.68 19.42 14.72
Pension and postretirement liabilities 3.78 3.07 3.39 4.77 3.90 3.30
Deferred income taxes 1.60 2.37 2.17 0.97 1.85 2.37
Asbestos litigation 1.53 1.64 1.74 0.24 0.00 0.00
Other 2.71 3.22 2.81 3.48 2.73 2.60
Other liabilities 9.62% 10.29% 10.11% 9.45% 8.47% 8.26%
Noncurrent liabilities 30.48% 25.68% 29.48% 28.13% 27.89% 22.98%
Total liabilities 59.64% 55.91% 55.23% 64.96% 63.20% 57.95%
Common stock, $0.50 par value 2.33 2.34 2.44 2.19 2.16 1.97
Additional paid-in capital 1.92 1.71 1.52 0.94 0.77 0.67
Retained earnings 118.06 113.15 112.28 99.88 96.47 82.17
Accumulated other comprehensive loss -8.40 -4.98 -5.20 -9.19 -7.32 -2.38
Cost of common stock in treasury -73.74 -68.34 -66.53 -59.01 -55.49 -40.58
Common stockholders’ equity 40.17% 43.88% 44.50% 34.81% 36.59% 41.85%
Noncontrolling interests in subsidiaries 0.20 0.21 0.27 0.23 0.21 0.20
Total equity 40.36% 44.09% 44.77% 35.04% 36.80% 42.05%
Total liabilities and equity 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 capital structure of the entity exhibits a fluctuating balance between total liabilities and total equity over the six-year period. Total liabilities peaked in 2016 at 64.96% of total liabilities and equity before decreasing and stabilizing between 55% and 60% in subsequent years. Correspondingly, total equity reached a period low of 35.04% in 2016 and recovered to 40.36% by 2019.

Liability Composition and Trends
Current liabilities showed a general downward trajectory, moving from 34.97% in 2014 to 29.16% in 2019. This decline was primarily driven by a reduction in short-term borrowings and current maturities of long-term debt, which fell from 10.20% to 7.04% over the period. Conversely, noncurrent liabilities increased from 22.98% in 2014 to 30.48% in 2019. A significant driver of this increase was long-term debt, excluding current maturities, which rose from 14.72% to 20.87%.
Equity Dynamics and Share Repurchases
The equity section is characterized by a stark divergence between retained earnings and the cost of common stock in treasury. Retained earnings grew substantially from 82.17% in 2014 to 118.06% in 2019. This growth was offset by an aggressive increase in treasury stock acquisitions, which rose from a negative 40.58% in 2014 to a negative 73.74% in 2019. This suggests a consistent strategy of returning capital to shareholders through share buybacks despite rising internal earnings.
Other Significant Obligations
Asbestos litigation liabilities emerged as a measurable component of the balance sheet starting in 2016 at 0.24% and increased to 1.53% by 2019. Pension and postretirement liabilities remained relatively stable, fluctuating between 3.07% and 4.77%. Deferred income taxes showed a general decline, ending at 1.60% in 2019 compared to 2.37% in 2014.

Overall, the financial profile indicates a shift toward long-term debt financing and a high volume of share repurchases, funded by strong retained earnings growth, while maintaining a relatively stable total liability-to-equity ratio after 2017.

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