Debt to Equity
since 2005
Calculation
Emerson Electric Co., debt to equity, long-term trends, calculation
| Debt to equity | = | Short-term borrowings and long-term debt1 | ÷ | Common stockholders’ equity1 | |
|---|---|---|---|---|---|
| Sep 30, 2019 | 0.69 | = | 5,721) | ÷ | 8,233) |
| Sep 30, 2018 | 0.53 | = | 4,760) | ÷ | 8,947) |
| Sep 30, 2017 | 0.53 | = | 4,656) | ÷ | 8,718) |
| Sep 30, 2016 | 0.88 | = | 6,646) | ÷ | 7,568) |
| Sep 30, 2015 | 0.85 | = | 6,842) | ÷ | 8,081) |
| Sep 30, 2014 | 0.60 | = | 6,024) | ÷ | 10,119) |
| Sep 30, 2013 | 0.53 | = | 5,642) | ÷ | 10,585) |
| Sep 30, 2012 | 0.51 | = | 5,293) | ÷ | 10,295) |
| Sep 30, 2011 | 0.50 | = | 5,201) | ÷ | 10,399) |
| Sep 30, 2010 | 0.52 | = | 5,066) | ÷ | 9,792) |
| Sep 30, 2009 | 0.53 | = | 4,575) | ÷ | 8,555) |
| Sep 30, 2008 | 0.50 | = | 4,518) | ÷ | 9,113) |
| Sep 30, 2007 | 0.43 | = | 3,776) | ÷ | 8,772) |
| Sep 30, 2006 | 0.49 | = | 4,026) | ÷ | 8,154) |
| Sep 30, 2005 | 0.55 | = | 4,098) | ÷ | 7,400) |
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), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$ in millions
The financial trajectory from 2005 to 2019 is characterized by three distinct phases: a period of relative stability, a significant spike in leverage, and a subsequent correction followed by a recent increase in debt reliance.
- Debt Obligations
- Total borrowings remained relatively stable between 2005 and 2007, followed by a steady upward trend that peaked at 6,842 million USD in 2015. A substantial reduction in debt occurred in 2017, where obligations fell to 4,656 million USD, the lowest level since 2007. This was followed by a moderate increase to 5,721 million USD by 2019.
- Common Stockholders' Equity
- Equity demonstrated consistent growth from 2005, reaching a peak of 10,585 million USD in 2013. A notable contraction occurred between 2014 and 2016, with equity dropping to a period low of 7,568 million USD. A recovery was observed through 2018, peaking again at 8,947 million USD before a slight decline to 8,233 million USD in 2019.
- Debt to Equity Ratio Analysis
- For the majority of the period between 2005 and 2013, the ratio remained stable, fluctuating within a narrow range of 0.43 to 0.53. A sharp escalation in leverage began in 2014, culminating in a peak ratio of 0.88 in 2016, driven by the simultaneous increase in total debt and decrease in stockholders' equity. This leverage peaked and then corrected sharply in 2017, returning to 0.53. However, the ratio rose again to 0.69 by 2019, indicating a renewed shift toward debt financing relative to equity.
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Comparison to Competitors
Emerson Electric Co., debt to equity, long-term trends, comparison to competitors
| Emerson Electric Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Sep 30, 2019 | 0.69 | — | 2.58 | 0.52 | 3.21 | 0.87 | 4.05 | 1.04 |
| Sep 30, 2018 | 0.53 | 40.85 | 2.60 | 0.47 | 3.55 | 0.89 | 9.04 | 1.18 |
| Sep 30, 2017 | 0.53 | 31.32 | 2.55 | 0.45 | 2.09 | 1.04 | — | 0.93 |
| Sep 30, 2016 | 0.88 | 12.18 | 2.80 | 0.56 | 1.80 | 0.81 | 9.45 | 0.87 |
| Sep 30, 2015 | 0.85 | 1.57 | 2.57 | 0.56 | 2.02 | 0.66 | 4.62 | 0.75 |
| Sep 30, 2014 | 0.60 | 1.05 | 2.35 | 0.57 | 2.85 | 0.49 | 1.81 | 0.63 |
| Sep 30, 2013 | 0.53 | 0.65 | 1.81 | 0.57 | 2.93 | 0.51 | 1.25 | 0.64 |
| Sep 30, 2012 | 0.51 | 1.77 | 2.29 | 0.72 | 3.37 | 0.58 | 157.90 | 0.90 |
| Sep 30, 2011 | 0.50 | 3.52 | 2.69 | 0.51 | 3.89 | 0.70 | 6.45 | 0.47 |
| Sep 30, 2010 | 0.52 | 4.49 | 2.63 | 0.47 | 4.02 | 0.62 | 1.35 | 0.48 |
| Sep 30, 2009 | 0.53 | 6.07 | 3.62 | 0.51 | 4.35 | 0.86 | 1.22 | 0.49 |
| Sep 30, 2008 | 0.50 | — | 5.84 | 0.68 | 5.00 | 1.17 | 1.24 | 0.72 |
| Sep 30, 2007 | 0.43 | 0.91 | 3.20 | 0.66 | 4.45 | 0.83 | 0.44 | 0.43 |
| Sep 30, 2006 | 0.49 | 2.01 | 3.98 | 0.63 | 3.85 | 0.52 | 0.64 | 0.46 |
| Sep 30, 2005 | 0.55 | 0.97 | 3.05 | 0.65 | 3.39 | 0.45 | 0.61 | 0.48 |
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), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Capital Goods)
Emerson Electric Co., debt to equity, long-term trends, comparison to sector (capital goods)
| Emerson Electric Co. | Capital Goods | |
|---|---|---|
| Sep 30, 2019 | 0.69 | 2.08 |
| Sep 30, 2018 | 0.53 | 2.03 |
| Sep 30, 2017 | 0.53 | 1.74 |
| Sep 30, 2016 | 0.88 | 1.60 |
| Sep 30, 2015 | 0.85 | 1.64 |
| Sep 30, 2014 | 0.60 | 2.06 |
| Sep 30, 2013 | 0.53 | 2.00 |
| Sep 30, 2012 | 0.51 | 2.56 |
| Sep 30, 2011 | 0.50 | 3.04 |
| Sep 30, 2010 | 0.52 | 3.10 |
| Sep 30, 2009 | 0.53 | 3.46 |
| Sep 30, 2008 | 0.50 | 4.19 |
| Sep 30, 2007 | 0.43 | 3.21 |
| Sep 30, 2006 | 0.49 | 3.02 |
| Sep 30, 2005 | 0.55 | 2.53 |
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), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Industrials)
Emerson Electric Co., debt to equity, long-term trends, comparison to industry (industrials)
| Emerson Electric Co. | Industrials | |
|---|---|---|
| Sep 30, 2019 | 0.69 | 1.82 |
| Sep 30, 2018 | 0.53 | 1.85 |
| Sep 30, 2017 | 0.53 | 1.65 |
| Sep 30, 2016 | 0.88 | 1.54 |
| Sep 30, 2015 | 0.85 | 1.51 |
| Sep 30, 2014 | 0.60 | 1.89 |
| Sep 30, 2013 | 0.53 | 1.79 |
| Sep 30, 2012 | 0.51 | 2.29 |
| Sep 30, 2011 | 0.50 | 2.60 |
| Sep 30, 2010 | 0.52 | 2.68 |
| Sep 30, 2009 | 0.53 | 3.01 |
| Sep 30, 2008 | 0.50 | 3.54 |
| Sep 30, 2007 | 0.43 | 2.73 |
| Sep 30, 2006 | 0.49 | 2.49 |
| Sep 30, 2005 | 0.55 | 2.42 |
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), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).