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 total asset turnover ratio exhibits a cyclical trajectory characterized by an initial period of efficiency gains, a phase of relative stability, a significant structural contraction, and a subsequent recovery period between 2005 and 2019.
- Growth and Peak Efficiency (2005–2008)
- A consistent upward trend in asset utilization was observed from 2005 to 2008, with the turnover ratio increasing from 1.00 to a peak of 1.18. This improvement was driven by robust growth in net sales, which rose from 17.3 billion to 24.8 billion, outpacing the growth of the total asset base during this timeframe.
- Period of Stability and Fluctuation (2009–2015)
- Following the 2008 peak, the ratio entered a period of fluctuation, generally maintaining a level around 1.00. While net sales remained relatively stable, fluctuating between approximately 21 billion and 24 billion, total assets continued to climb to a peak of 24.7 billion in 2013, which limited the potential for further increases in the turnover ratio.
- Structural Contraction (2016)
- A sharp decline in asset efficiency occurred in 2016, with the turnover ratio dropping to its lowest point of 0.67. This decline was primarily the result of a substantial decrease in net sales, which fell to 14.5 billion, while the asset base remained disproportionately high at 21.7 billion. This indicates a significant misalignment between the company's resource base and its revenue-generating capacity during this year.
- Recovery and Optimization (2017–2019)
- A steady recovery trend is evident from 2017 through 2019, as the turnover ratio climbed from 0.78 to 0.90. This recovery was supported by a gradual increase in net sales to 18.4 billion and a simultaneous reduction in total assets to 20.5 billion, suggesting a strategic optimization of the balance sheet to better align with current revenue streams.
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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).