Selected Financial Data
since 2005
Income Statement
Emerson Electric Co., selected items from income statement, long-term trends
US$ in millions
| 12 months ended: | Net sales | Net earnings common stockholders |
|---|---|---|
| Sep 30, 2019 | 18,372) | 2,306) |
| Sep 30, 2018 | 17,408) | 2,203) |
| Sep 30, 2017 | 15,264) | 1,518) |
| Sep 30, 2016 | 14,522) | 1,635) |
| Sep 30, 2015 | 22,304) | 2,710) |
| Sep 30, 2014 | 24,537) | 2,147) |
| Sep 30, 2013 | 24,669) | 2,004) |
| Sep 30, 2012 | 24,412) | 1,968) |
| Sep 30, 2011 | 24,222) | 2,480) |
| Sep 30, 2010 | 21,039) | 2,164) |
| Sep 30, 2009 | 20,915) | 1,724) |
| Sep 30, 2008 | 24,807) | 2,412) |
| Sep 30, 2007 | 22,572) | 2,136) |
| Sep 30, 2006 | 20,133) | 1,845) |
| Sep 30, 2005 | 17,305) | 1,422) |
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).
The financial trajectory from 2005 to 2019 is characterized by an initial growth phase, a period of volatility associated with macroeconomic shifts, and a significant structural adjustment in the mid-2010s.
- Net Sales Performance
- Revenue exhibited a strong upward trend between 2005 and 2008, peaking at 24,807 million dollars. A notable contraction occurred in 2009, followed by a period of relative stability where sales fluctuated between 21,039 million and 24,669 million dollars from 2010 through 2014. A sharp decline is observed in 2016, where net sales fell to 14,522 million dollars, representing the lowest point in the analyzed period. Since 2016, a consistent recovery trend has emerged, with sales rising to 18,372 million dollars by 2019.
- Net Earnings Trends
- Earnings for common stockholders largely mirrored revenue patterns, growing from 1,422 million dollars in 2005 to 2,412 million dollars in 2008. A dip in 2009 coincided with the sales contraction, followed by a recovery. A divergent trend is observed in 2015, where net earnings reached a peak of 2,710 million dollars despite a decrease in net sales compared to 2014. Following a significant drop in 2016 to 1,635 million dollars, earnings resumed an upward trajectory, reaching 2,306 million dollars by 2019.
- Profitability and Operational Efficiency
- Analysis of the relationship between net sales and net earnings indicates an improvement in overall profitability margins over the long term. While the 2005 net earnings represented approximately 8.2% of sales, the 2019 earnings represented approximately 12.6% of sales. The increase in earnings relative to sales observed in 2015 and the recovery post-2016 suggest a strategic shift toward higher-margin operations or enhanced cost efficiencies following the revenue contraction of 2016.
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Balance Sheet: Assets
Emerson Electric Co., selected items from assets, long-term trends
US$ in millions
| Current assets | Total assets | |
|---|---|---|
| Sep 30, 2019 | 7,139) | 20,497) |
| Sep 30, 2018 | 6,619) | 20,390) |
| Sep 30, 2017 | 8,252) | 19,589) |
| Sep 30, 2016 | 9,960) | 21,743) |
| Sep 30, 2015 | 10,049) | 22,088) |
| Sep 30, 2014 | 10,867) | 24,177) |
| Sep 30, 2013 | 10,999) | 24,711) |
| Sep 30, 2012 | 10,126) | 23,818) |
| Sep 30, 2011 | 9,345) | 23,861) |
| Sep 30, 2010 | 8,363) | 22,843) |
| Sep 30, 2009 | 7,653) | 19,763) |
| Sep 30, 2008 | 9,331) | 21,040) |
| Sep 30, 2007 | 8,065) | 19,680) |
| Sep 30, 2006 | 7,330) | 18,672) |
| Sep 30, 2005 | 6,837) | 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).
An analysis of the balance sheet assets reveals a trajectory characterized by two distinct phases: an expansionary period from 2005 to 2013, followed by a phase of contraction and subsequent stabilization between 2014 and 2019.
- Total Asset Trends
- Total assets exhibited a general upward trend from 2005, starting at 17,227 million USD and reaching a peak of 24,711 million USD in 2013. A notable exception occurred in 2009, where assets dipped to 19,763 million USD before resuming growth. Following the 2013 peak, a period of contraction ensued, with total assets declining to 19,589 million USD by 2017. The period ended with a trend toward stabilization, closing at 20,497 million USD in 2019.
- Current Asset Dynamics
- Current assets followed a similar growth pattern to total assets until 2013, peaking at 10,999 million USD. However, the decline post-2013 was more pronounced than that of total assets. Between 2013 and 2018, current assets decreased from 10,999 million USD to 6,619 million USD, representing a significant reduction in short-term asset holdings. A slight recovery was observed in the final year, with current assets rising to 7,139 million USD in 2019.
- Asset Composition and Liquidity Shift
- The relationship between current assets and total assets indicates a shift in financial structure. In 2005, current assets constituted approximately 39.7% of total assets. This proportion increased to a high of 44.5% in 2013, suggesting an increase in liquidity or a higher concentration of short-term resources. By 2018, this ratio fell to 32.5%, indicating a strategic shift toward non-current assets or a deliberate reduction in the liquidity profile of the balance sheet.
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Balance Sheet: Liabilities and Stockholders’ Equity
Emerson Electric Co., selected items from liabilities and stockholders’ equity, long-term trends
US$ in millions
| Current liabilities | Short-term borrowings and long-term debt | Common stockholders’ equity | |
|---|---|---|---|
| Sep 30, 2019 | 5,976) | 5,721) | 8,233) |
| Sep 30, 2018 | 6,164) | 4,760) | 8,947) |
| Sep 30, 2017 | 5,045) | 4,656) | 8,718) |
| Sep 30, 2016 | 8,008) | 6,646) | 7,568) |
| Sep 30, 2015 | 7,800) | 6,842) | 8,081) |
| Sep 30, 2014 | 8,454) | 6,024) | 10,119) |
| Sep 30, 2013 | 7,625) | 5,642) | 10,585) |
| Sep 30, 2012 | 7,133) | 5,293) | 10,295) |
| Sep 30, 2011 | 6,465) | 5,201) | 10,399) |
| Sep 30, 2010 | 5,849) | 5,066) | 9,792) |
| Sep 30, 2009 | 4,956) | 4,575) | 8,555) |
| Sep 30, 2008 | 6,573) | 4,518) | 9,113) |
| Sep 30, 2007 | 5,546) | 3,776) | 8,772) |
| Sep 30, 2006 | 5,374) | 4,026) | 8,154) |
| Sep 30, 2005 | 4,931) | 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).
The financial data from 2005 to 2019 reveals a period of expansion in both obligations and equity through 2013, followed by a phase of volatility and a subsequent balance sheet restructuring between 2014 and 2019.
- Current Liabilities Trend
- Current liabilities exhibited a general upward trajectory for the first decade, rising from 4,931 million US$ in 2005 to a peak of 8,454 million US$ in 2014. A significant correction occurred in 2017, when current liabilities dropped sharply to 5,045 million US$ from 8,008 million US$ in the preceding year, before stabilizing near 6,000 million US$ in 2018 and 2019.
- Debt Obligations
- Short-term borrowings and long-term debt remained relatively stable until 2008, after which a steady increase was observed, peaking at 6,842 million US$ in 2015. Similar to current liabilities, a substantial reduction took place in 2017, with debt falling to 4,656 million US$. This was followed by a moderate increase to 5,721 million US$ by the end of the period in 2019.
- Common Stockholders' Equity
- Equity grew consistently from 7,400 million US$ in 2005 to a maximum of 10,585 million US$ in 2013. A downward trend emerged between 2014 and 2016, with equity declining to 7,568 million US$. A recovery occurred in 2017 and 2018, reaching 8,947 million US$, before ending the period at 8,233 million US$ in 2019.
Analysis of the concurrent movements in these metrics indicates a pivot in the capital structure around 2017. The simultaneous reduction in both short-term and long-term debt, paired with a recovery in stockholders' equity, suggests a strategic deleveraging event or a significant reorganization of the company's financial obligations during that timeframe.
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Cash Flow Statement
Emerson Electric Co., selected items from cash flow statement, long-term trends
US$ in millions
| 12 months ended: | Cash provided by operating activities | Cash (used in) provided by investing activities | Cash used in financing activities |
|---|---|---|---|
| Sep 30, 2019 | 3,006) | (1,174) | (1,391) |
| Sep 30, 2018 | 2,892) | (2,720) | (2,092) |
| Sep 30, 2017 | 2,690) | (3,533) | (3,591) |
| Sep 30, 2016 | 2,499) | (549) | (2,045) |
| Sep 30, 2015 | 2,529) | 591) | (2,948) |
| Sep 30, 2014 | 3,692) | (1,159) | (2,559) |
| Sep 30, 2013 | 3,649) | (789) | (1,933) |
| Sep 30, 2012 | 3,053) | (806) | (1,899) |
| Sep 30, 2011 | 3,233) | (848) | (1,887) |
| Sep 30, 2010 | 3,292) | (2,517) | (726) |
| Sep 30, 2009 | 3,086) | (1,309) | (1,948) |
| Sep 30, 2008 | 3,293) | (1,072) | (1,454) |
| Sep 30, 2007 | 3,016) | (870) | (1,994) |
| Sep 30, 2006 | 2,512) | (1,216) | (1,731) |
| Sep 30, 2005 | 2,187) | (928) | (1,369) |
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).
The cash flow profile from 2005 to 2019 reveals a company with consistently strong operational cash generation, which has served as the primary funding source for both strategic investments and financing obligations.
- Operating Cash Flow Trends
- Cash provided by operating activities exhibited a general upward trajectory from 2005 through 2014, rising from 2,187 million to a peak of 3,692 million. A notable contraction occurred in 2015, where cash flow dropped to 2,529 million, followed by a period of gradual recovery that brought the figure back to 3,006 million by 2019. This pattern suggests a robust capacity to generate liquidity from core business operations despite periodic volatility.
- Investing Activity Patterns
- Investing activities were characterized by consistent net outflows, indicating sustained capital expenditure or acquisitions, with significant variations in intensity. Major capital deployments were observed in 2010, 2017, and 2018, with the 2017 outflow reaching a peak of 3,533 million. A distinct departure from this trend occurred in 2015, when the company recorded a positive cash inflow of 591 million, suggesting a strategic divestiture of assets during that fiscal year.
- Financing Activity Obligations
- Cash used in financing activities remained negative throughout the entire 14-year period, reflecting a continuous commitment to debt repayment, dividend distributions, or share repurchases. Outflows were particularly pronounced between 2014 and 2017, with the maximum expenditure occurring in 2017 at 3,591 million. The persistence of these outflows, regardless of the fluctuations in investing activities, demonstrates a disciplined approach to capital structure management and shareholder returns.
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Per Share Data
Emerson Electric Co., selected data per share, long-term trends
US$
| 12 months ended: | Basic earnings per share 1 | Diluted earnings per share 2 | Dividend per share 3 |
|---|---|---|---|
| Sep 30, 2019 | 3.74 | 3.71 | 1.96 |
| Sep 30, 2018 | 3.48 | 3.46 | 1.94 |
| Sep 30, 2017 | 2.35 | 2.35 | 1.92 |
| Sep 30, 2016 | 2.53 | 2.52 | 1.90 |
| Sep 30, 2015 | 4.01 | 3.99 | 1.88 |
| Sep 30, 2014 | 3.05 | 3.03 | 1.72 |
| Sep 30, 2013 | 2.78 | 2.76 | 1.64 |
| Sep 30, 2012 | 2.68 | 2.67 | 1.60 |
| Sep 30, 2011 | 3.29 | 3.27 | 1.38 |
| Sep 30, 2010 | 2.87 | 2.84 | 1.34 |
| Sep 30, 2009 | 2.29 | 2.27 | 1.32 |
| Sep 30, 2008 | 3.09 | 3.06 | 1.20 |
| Sep 30, 2007 | 2.69 | 2.66 | 1.05 |
| Sep 30, 2006 | 2.26 | 2.24 | 0.89 |
| Sep 30, 2005 | 1.72 | 1.70 | 0.83 |
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, 2, 3 Data adjusted for splits and stock dividends.
Between 2005 and 2019, the per-share financial performance was characterized by cyclical volatility in earnings contrasted with a consistent, linear increase in dividend distributions. While earnings experienced several peaks and troughs, the dividend policy remained stable and progressive throughout the entire period.
- Earnings Per Share Performance
- Basic and diluted earnings per share followed a nearly identical trajectory, indicating minimal dilution of shareholder value. Earnings grew steadily from 2005, reaching an initial peak of 3.09 (basic) in 2008 before declining to 2.29 in 2009. A subsequent recovery led to a secondary peak of 3.29 in 2011. The most significant growth occurred leading up to 2015, where basic earnings per share reached a period high of 4.01. This was followed by a sharp contraction in 2016 and 2017, with earnings falling to 2.35, before rebounding to 3.74 by 2019.
- Dividend Distribution Trends
- Dividend per share exhibited an uninterrupted upward trend over the 15-year period. Starting at 0.83 in 2005, the dividend increased annually to reach 1.96 by 2019. The growth was incremental and steady, regardless of the fluctuations observed in the bottom-line earnings.
- Analysis of Payout Stability
- A decoupling is observed between earnings volatility and dividend growth. During periods of earnings contraction—specifically in 2009 and 2016-2017—dividends per share continued to rise. This suggests a corporate strategy focused on maintaining shareholder returns and signaling financial stability even during downturns in profitability. The margin between earnings and dividends narrowed significantly during the 2017 low, yet the dividend growth trajectory remained intact.
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