Return on Assets (ROA)
since 2005
Calculation
Emerson Electric Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings common stockholders1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2019 | 11.25% | = | 100 | × | 2,306) | ÷ | 20,497) |
| Sep 30, 2018 | 10.80% | = | 100 | × | 2,203) | ÷ | 20,390) |
| Sep 30, 2017 | 7.75% | = | 100 | × | 1,518) | ÷ | 19,589) |
| Sep 30, 2016 | 7.52% | = | 100 | × | 1,635) | ÷ | 21,743) |
| Sep 30, 2015 | 12.27% | = | 100 | × | 2,710) | ÷ | 22,088) |
| Sep 30, 2014 | 8.88% | = | 100 | × | 2,147) | ÷ | 24,177) |
| Sep 30, 2013 | 8.11% | = | 100 | × | 2,004) | ÷ | 24,711) |
| Sep 30, 2012 | 8.26% | = | 100 | × | 1,968) | ÷ | 23,818) |
| Sep 30, 2011 | 10.39% | = | 100 | × | 2,480) | ÷ | 23,861) |
| Sep 30, 2010 | 9.47% | = | 100 | × | 2,164) | ÷ | 22,843) |
| Sep 30, 2009 | 8.72% | = | 100 | × | 1,724) | ÷ | 19,763) |
| Sep 30, 2008 | 11.46% | = | 100 | × | 2,412) | ÷ | 21,040) |
| Sep 30, 2007 | 10.85% | = | 100 | × | 2,136) | ÷ | 19,680) |
| Sep 30, 2006 | 9.88% | = | 100 | × | 1,845) | ÷ | 18,672) |
| Sep 30, 2005 | 8.25% | = | 100 | × | 1,422) | ÷ | 17,227) |
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 analysis of the financial performance from 2005 to 2019 reveals a volatile yet resilient Return on Assets (ROA) trend. The efficiency of asset utilization fluctuated in response to both earnings volatility and shifts in the total asset base, with ROA ranging from a low of 7.52% in 2016 to a peak of 12.27% in 2015.
- Earnings and Asset Trends
- Net earnings demonstrated significant variability over the period, starting at 1,422 million USD in 2005 and reaching a peak of 2,710 million USD in 2015. Concurrently, total assets experienced a growth phase from 2005 to 2013, peaking at 24,711 million USD before entering a period of gradual contraction, ending at 20,497 million USD in 2019. This reduction in the asset base during the latter half of the period contributed to the stabilization of efficiency ratios.
- ROA Growth and Contraction Phases
- An initial upward trajectory in ROA is observed between 2005 and 2008, where the ratio climbed from 8.25% to 11.46%. A sharp contraction occurred in 2009, with ROA falling to 8.72%, correlating with a decrease in net earnings. A subsequent recovery period followed through 2011, after which the ratio entered a phase of relative stability between 8.11% and 8.88% from 2012 to 2014.
- Peak Performance and Subsequent Volatility
- The maximum ROA of 12.27% was achieved in 2015, driven by the combination of peak net earnings and a declining asset base. However, this peak was followed by a significant decline in 2016 and 2017, where ROA dropped to 7.52% and 7.75% respectively. This downturn was primarily attributed to a sharp reduction in net earnings common stockholders during those two fiscal years.
- Recovery and Final Trend
- A strong recovery is evident in the final two years of the analyzed period. ROA increased to 10.80% in 2018 and further to 11.25% in 2019. This recovery was supported by a rebound in net earnings to 2,306 million USD and the maintenance of a leaner asset base compared to the 2013 peak.
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Comparison to Competitors
Emerson Electric Co., ROA, 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 | 11.25% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Sep 30, 2018 | 10.80% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Sep 30, 2017 | 7.75% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Sep 30, 2016 | 7.52% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Sep 30, 2015 | 12.27% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Sep 30, 2014 | 8.88% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Sep 30, 2013 | 8.11% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Sep 30, 2012 | 8.26% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Sep 30, 2011 | 10.39% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Sep 30, 2010 | 9.47% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Sep 30, 2009 | 8.72% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Sep 30, 2008 | 11.46% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Sep 30, 2007 | 10.85% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Sep 30, 2006 | 9.88% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Sep 30, 2005 | 8.25% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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., ROA, long-term trends, comparison to sector (capital goods)
| Emerson Electric Co. | Capital Goods | |
|---|---|---|
| Sep 30, 2019 | 11.25% | 2.72% |
| Sep 30, 2018 | 10.80% | 1.74% |
| Sep 30, 2017 | 7.75% | 1.83% |
| Sep 30, 2016 | 7.52% | 4.09% |
| Sep 30, 2015 | 12.27% | 2.17% |
| Sep 30, 2014 | 8.88% | 3.87% |
| Sep 30, 2013 | 8.11% | 3.45% |
| Sep 30, 2012 | 8.26% | 3.30% |
| Sep 30, 2011 | 10.39% | 3.30% |
| Sep 30, 2010 | 9.47% | 2.70% |
| Sep 30, 2009 | 8.72% | 2.16% |
| Sep 30, 2008 | 11.46% | 3.33% |
| Sep 30, 2007 | 10.85% | 3.89% |
| Sep 30, 2006 | 9.88% | 3.91% |
| Sep 30, 2005 | 8.25% | 3.25% |
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., ROA, long-term trends, comparison to industry (industrials)
| Emerson Electric Co. | Industrials | |
|---|---|---|
| Sep 30, 2019 | 11.25% | 2.56% |
| Sep 30, 2018 | 10.80% | 3.16% |
| Sep 30, 2017 | 7.75% | 3.59% |
| Sep 30, 2016 | 7.52% | 4.55% |
| Sep 30, 2015 | 12.27% | 3.52% |
| Sep 30, 2014 | 8.88% | 4.31% |
| Sep 30, 2013 | 8.11% | 3.91% |
| Sep 30, 2012 | 8.26% | 3.38% |
| Sep 30, 2011 | 10.39% | 3.69% |
| Sep 30, 2010 | 9.47% | 3.03% |
| Sep 30, 2009 | 8.72% | 2.24% |
| Sep 30, 2008 | 11.46% | 3.10% |
| Sep 30, 2007 | 10.85% | 3.87% |
| Sep 30, 2006 | 9.88% | 6.41% |
| Sep 30, 2005 | 8.25% | 1.42% |
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).