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.

Return on Equity (ROE) 
since 2005

Microsoft Excel

Calculation

Emerson Electric Co., ROE, long-term trends, calculation

Microsoft Excel

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


Over the examined period, net earnings available to common stockholders have demonstrated notable fluctuations. Starting at $1,422 million in 2005, earnings posted a general upward trend, peaking at $2,710 million in 2015. However, this peak was followed by a significant decline in 2016 to $1,635 million and a further dip in 2017 to $1,518 million. Subsequently, earnings recovered in the following years, reaching $2,306 million by 2019.

Common stockholders’ equity exhibited variation as well, increasing from $7,400 million in 2005 to a higher level around 2011 and 2012, where it remained relatively stable near $10,000 million. Following this period, equity declined appreciably, particularly between 2013 and 2016, reaching a low of $7,568 million in 2016 before showing moderate recovery up to $8,233 million by 2019.

Return on equity (ROE) consistently reflected these underlying earnings and equity trends. It started at 19.22% in 2005, rising steadily to a peak of 33.54% in 2015, which corresponds with the highest net earnings and a reduced equity base. After 2015, ROE declined significantly to 21.6% in 2016 and further to 17.41% in 2017, before increasing again to 28.01% by the end of the analysis period in 2019.

The data suggests a period of strong profitability improvement culminating in 2015, with subsequent declines that impacted both earnings and equity, followed by a phase of recovery. The inverse movement between equity levels and ROE around the mid-2010s indicates management’s ability to enhance returns through efficient use of equity, particularly when equity was reduced. Fluctuations in earnings and equity reflect a dynamic operational environment with possibly changing economic or business conditions influencing financial performance.


Comparison to Competitors

Emerson Electric Co., ROE, long-term trends, comparison to competitors

Microsoft Excel

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., ROE, long-term trends, comparison to sector (capital goods)

Microsoft Excel

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., ROE, long-term trends, comparison to industry (industrials)

Microsoft Excel

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).