Total Asset Turnover
since 2005
Calculation
Emerson Electric Co., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Sep 30, 2019 | 0.90 | = | 18,372) | ÷ | 20,497) |
| Sep 30, 2018 | 0.85 | = | 17,408) | ÷ | 20,390) |
| Sep 30, 2017 | 0.78 | = | 15,264) | ÷ | 19,589) |
| Sep 30, 2016 | 0.67 | = | 14,522) | ÷ | 21,743) |
| Sep 30, 2015 | 1.01 | = | 22,304) | ÷ | 22,088) |
| Sep 30, 2014 | 1.01 | = | 24,537) | ÷ | 24,177) |
| Sep 30, 2013 | 1.00 | = | 24,669) | ÷ | 24,711) |
| Sep 30, 2012 | 1.02 | = | 24,412) | ÷ | 23,818) |
| Sep 30, 2011 | 1.02 | = | 24,222) | ÷ | 23,861) |
| Sep 30, 2010 | 0.92 | = | 21,039) | ÷ | 22,843) |
| Sep 30, 2009 | 1.06 | = | 20,915) | ÷ | 19,763) |
| Sep 30, 2008 | 1.18 | = | 24,807) | ÷ | 21,040) |
| Sep 30, 2007 | 1.15 | = | 22,572) | ÷ | 19,680) |
| Sep 30, 2006 | 1.08 | = | 20,133) | ÷ | 18,672) |
| Sep 30, 2005 | 1.00 | = | 17,305) | ÷ | 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 data reveals several notable trends over the period from 2005 to 2019. Net sales exhibited a general upward trajectory from 2005 through 2014, increasing from 17,305 million US dollars to a peak of 24,537 million US dollars. However, a sharp decline is observed in 2015, dropping significantly to 14,522 million US dollars. Following this decline, net sales gradually recovered, reaching 18,372 million US dollars by 2019, though still below the earlier peak levels.
Total assets showed a steady increase from 2005, rising from 17,227 million US dollars to a high of 24,177 million US dollars in 2014. Post-2014, total assets decreased consistently, falling back to 19,589 million US dollars in 2017, and then stabilized somewhat, ending at 20,497 million US dollars in 2019. This pattern suggests a contraction in asset base following 2014.
The total asset turnover ratio, which measures the efficiency of asset use in generating sales, improved slightly from 1.00 in 2005 to a peak of 1.18 in 2008, indicating enhanced operational efficiency. This ratio then declined over subsequent years, dropping moderately to approximately 1.01 by 2014. A more pronounced decrease occurred from 2015 onwards, reaching a low of 0.67 in 2016. Partial recovery is seen thereafter, with the ratio improving to 0.90 by 2019. The decline and partial rebound in asset turnover suggest fluctuations in operational efficiency, possibly related to changes in asset base and sales performance during those years.
- Net Sales
- Overall growth until 2014, followed by a sharp decline in 2015, then gradual recovery through 2019.
- Total Assets
- Steady increase until 2014, contracted significantly by 2017, then modest stabilization through 2019.
- Total Asset Turnover
- Improved efficiency up to 2008, declining after 2008 with a significant drop post-2014, partial recovery toward 2019.
In summary, the financial data indicates a period of expansion in both sales and asset investment through the early 2010s, followed by a period of contraction and operational challenges after 2014. The decline in asset turnover aligns with reduced sales and asset base, while the modest recovery in recent years points toward ongoing efforts to regain operational efficiency and sales volume.
Comparison to Competitors
Emerson Electric Co., total asset turnover, 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 | 0.90 | 0.57 | 0.65 | 0.65 | 0.33 | 0.63 | 1.26 | 0.55 |
| Sep 30, 2018 | 0.85 | 0.86 | 0.66 | 0.70 | 0.37 | 0.72 | 1.20 | 0.50 |
| Sep 30, 2017 | 0.78 | 1.01 | 0.55 | 0.63 | 0.30 | 0.68 | 1.10 | 0.62 |
| Sep 30, 2016 | 0.67 | 1.05 | 0.48 | 0.65 | 0.30 | 0.73 | 0.99 | 0.64 |
| Sep 30, 2015 | 1.01 | 1.02 | 0.56 | 0.67 | 0.21 | 0.78 | 0.94 | 0.64 |
| Sep 30, 2014 | 1.01 | 0.91 | 0.62 | 0.67 | 0.16 | 0.89 | 1.23 | 0.71 |
| Sep 30, 2013 | 1.00 | 0.93 | 0.62 | 0.62 | 0.15 | 0.86 | 1.25 | 0.69 |
| Sep 30, 2012 | 1.02 | 0.92 | 0.71 | 0.46 | 0.15 | 0.90 | 1.22 | 0.65 |
| Sep 30, 2011 | 1.02 | 0.86 | 0.70 | 0.90 | 0.13 | 0.92 | 1.23 | 0.95 |
| Sep 30, 2010 | 0.92 | 0.94 | 0.62 | 0.79 | 0.13 | 0.88 | 1.31 | 0.93 |
| Sep 30, 2009 | 1.06 | 1.10 | 0.49 | 0.73 | 0.13 | 0.86 | 1.29 | 0.94 |
| Sep 30, 2008 | 1.18 | 1.13 | 0.71 | 0.92 | 0.14 | 1.03 | 1.28 | 1.03 |
| Sep 30, 2007 | 1.15 | 1.13 | 0.75 | 0.97 | 0.13 | 1.02 | 1.45 | 0.99 |
| Sep 30, 2006 | 1.08 | 1.19 | 0.76 | 1.08 | 0.14 | 1.01 | 1.40 | 1.00 |
| Sep 30, 2005 | 1.00 | 0.91 | 0.72 | 1.09 | 0.14 | 0.86 | 1.34 | 0.92 |
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., total asset turnover, long-term trends, comparison to sector (capital goods)
| Emerson Electric Co. | Capital Goods | |
|---|---|---|
| Sep 30, 2019 | 0.90 | 0.54 |
| Sep 30, 2018 | 0.85 | 0.58 |
| Sep 30, 2017 | 0.78 | 0.54 |
| Sep 30, 2016 | 0.67 | 0.54 |
| Sep 30, 2015 | 1.01 | 0.46 |
| Sep 30, 2014 | 1.01 | 0.41 |
| Sep 30, 2013 | 1.00 | 0.39 |
| Sep 30, 2012 | 1.02 | 0.38 |
| Sep 30, 2011 | 1.02 | 0.36 |
| Sep 30, 2010 | 0.92 | 0.34 |
| Sep 30, 2009 | 1.06 | 0.33 |
| Sep 30, 2008 | 1.18 | 0.35 |
| Sep 30, 2007 | 1.15 | 0.34 |
| Sep 30, 2006 | 1.08 | 0.36 |
| Sep 30, 2005 | 1.00 | 0.33 |
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., total asset turnover, long-term trends, comparison to industry (industrials)
| Emerson Electric Co. | Industrials | |
|---|---|---|
| Sep 30, 2019 | 0.90 | 0.62 |
| Sep 30, 2018 | 0.85 | 0.67 |
| Sep 30, 2017 | 0.78 | 0.62 |
| Sep 30, 2016 | 0.67 | 0.61 |
| Sep 30, 2015 | 1.01 | 0.54 |
| Sep 30, 2014 | 1.01 | 0.49 |
| Sep 30, 2013 | 1.00 | 0.47 |
| Sep 30, 2012 | 1.02 | 0.46 |
| Sep 30, 2011 | 1.02 | 0.45 |
| Sep 30, 2010 | 0.92 | 0.41 |
| Sep 30, 2009 | 1.06 | 0.39 |
| Sep 30, 2008 | 1.18 | 0.43 |
| Sep 30, 2007 | 1.15 | 0.41 |
| Sep 30, 2006 | 1.08 | 0.43 |
| Sep 30, 2005 | 1.00 | 0.40 |
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).