Analysis of Geographic Areas
Emerson Electric Co. operates in 3 regions: Americas; Asia, Middle East & Africa; and Europe.
Paying user area
Try for free
Emerson Electric Co. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Emerson Electric Co. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Area Asset Turnover
Emerson Electric Co., asset turnover by geographic area
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Asia, Middle East & Africa | ||||||
| Europe |
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).
The asset turnover ratios in the geographic areas of the Americas, Asia, Middle East & Africa, and Europe demonstrate distinct trends over the six-year period from September 30, 2014, to September 30, 2019.
- Americas
- The asset turnover ratio in the Americas shows a decreasing trend from 5.45 in 2014 to 4.20 in 2017, indicating a reduction in the efficiency with which assets were used to generate sales. From 2017 onwards, the ratio stabilizes and exhibits a slight recovery, rising to 4.32 by 2019. Despite this partial rebound, the 2019 level remains below that of 2014, suggesting longer-term challenges or shifts in asset utilization.
- Asia, Middle East & Africa
- This region experiences a pronounced decline in asset turnover from 10.58 in 2014 to a low of 6.58 in 2017. Following 2017, the ratio improves somewhat, increasing to 7.73 in 2018 before slightly declining again to 7.58 in 2019. The initial sharp drop and subsequent fluctuations indicate volatility in asset efficiency, possibly driven by market conditions or operational changes specific to this region.
- Europe
- Europe's asset turnover ratio begins at 6.00 in 2014 and trends downward to a notable low of 3.89 in 2017, signaling a significant decrease in asset utilization efficiency over this period. From 2017 onwards, there is a clear recovery, with the ratio increasing to 5.04 by 2019. This rebound suggests improved operational performance or asset management in the latter years, although the 2019 ratio remains slightly below the 2014 level.
Overall, all three geographic areas experienced a decline in asset turnover from 2014 through 2017, followed by a period of stabilization or recovery. Asia, Middle East & Africa consistently maintains the highest asset turnover ratios despite its decline, indicating comparatively greater efficiency in asset usage. The Americas and Europe show similar patterns but with lower turnover values, suggesting differing regional operational dynamics. The data imply that challenges impacted asset efficiency across all regions up to 2017, with subsequent efforts yielding partial recoveries by 2019.
Area Asset Turnover: Americas
Emerson Electric Co.; Americas; area asset turnover calculation
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and equipment | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2019 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment
= ÷ =
- Sales Trend
- Sales showed a declining trend from 2014 to 2016, dropping from 12,770 million US dollars in 2014 to 8,339 million US dollars in 2016. After this decline, sales began to recover gradually, increasing to 10,103 million US dollars by 2019. Overall, the sales figures indicate a period of contraction followed by a phase of growth towards the end of the observed period.
- Property, Plant, and Equipment (PP&E)
- The net book value of property, plant, and equipment decreased from 2,342 million US dollars in 2014 to 1,983 million US dollars in 2016. Following this nadir, PP&E values rose steadily, reaching 2,339 million US dollars in 2019. This pattern suggests that after an initial period of reduction, likely due to asset disposals or depreciation exceeding investments, there was renewed capital expenditure or asset acquisition activity over the latter years.
- Area Asset Turnover Ratio
- The area asset turnover ratio declined noticeably from 5.45 in 2014 to 4.21 in 2016, reflecting reduced efficiency in utilizing assets to generate sales during that period. The ratio then stabilized and exhibited a modest upward trend from 2017 onwards, ending at 4.32 in 2019. This trend indicates a partial recovery in asset utilization efficiency, although the turnover ratio remained below the levels observed at the start of the period.
- Overall Insights
- The data reveals a period of financial contraction between 2014 and 2016, characterized by falling sales, declining asset values, and deteriorating asset efficiency. From 2017 to 2019, all three metrics show improvement, suggesting a strategic turnaround or market recovery in the Americas segment. Despite these positive signs, by the end of 2019 the company had not yet fully regained the performance levels present in 2014, indicating ongoing recovery efforts.
Area Asset Turnover: Asia, Middle East & Africa
Emerson Electric Co.; Asia, Middle East & Africa; area asset turnover calculation
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and equipment | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2019 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment
= ÷ =
- Sales
- Sales in the Asia, Middle East & Africa geographic area show a noticeable decline from 2014 to 2016, dropping from 6,952 million US dollars in 2014 to a low of 3,883 million US dollars in 2016. Following this decline, sales experienced a recovery trend, increasing to 4,209 million in 2017 and continuing upward to 5,083 million by 2019, though not returning to the initial 2014 level.
- Property, Plant and Equipment (PPE)
- The value of property, plant and equipment fluctuated moderately throughout the reviewed period. It decreased from 657 million US dollars in 2014 to 513 million in 2016, corresponding with the decline in sales. Subsequently, PPE increased steadily, reaching 671 million in 2019, slightly surpassing the 2014 position. This suggests reinvestment or expansion in fixed assets following the sales recovery.
- Area Asset Turnover
- The area asset turnover ratio exhibited a declining trend from 10.58 in 2014 to its lowest point of 6.58 in 2017. This ratio then showed a slight improvement, rising to 7.73 in 2018 but decreasing marginally to 7.58 in 2019. The initial decline reflects reduced efficiency in generating sales from assets during the sales downturn period, while the subsequent modest improvement aligns with the recovery in sales and increased investment in assets.
- Summary
- Overall, the data indicate an initial phase of contraction in sales and asset base from 2014 to 2016, followed by a period of recovery and moderate growth through 2019. The decline in asset turnover ratio during the downturn implies reduced asset utilization efficiency, which improves somewhat as both sales and asset values increase. The company's capital investment in property, plant, and equipment appears to respond to sales trends with a lag, supporting renewed operational capacity in recent years.
Area Asset Turnover: Europe
Emerson Electric Co.; Europe; area asset turnover calculation
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and equipment | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2019 Calculation
Area asset turnover = Sales ÷ Property, plant and equipment
= ÷ =
The data for the Europe geographic area reveals several notable trends over the analyzed period from 2014 to 2019. Sales demonstrate a significant decline initially, dropping sharply from 4,815 million US dollars in 2014 to 2,300 million US dollars in 2016. Following this decline, sales gradually recover, increasing to 3,185 million by 2019, although the level remains below the initial 2014 figure.
Property, plant, and equipment (PP&E) values exhibit a downward trend overall, reducing from 803 million US dollars in 2014 to 435 million in 2016. After this low point, PP&E rises again and remains relatively stable around the mid-600 million range through 2018 and 2019, indicating some reinvestment or asset enhancement after the reduction phase.
The area asset turnover ratio, which measures sales generated per unit of asset, declines steadily from 6.00 in 2014 to a minimum of 3.89 in 2017, reflecting decreased efficiency in the utilization of assets during this period. However, from 2017 onwards, the ratio improves to 5.04 by 2019, signaling enhanced operational efficiency correlating with the recovery in sales.
Overall, the period is characterized by an initial contraction phase with reduced sales and asset base, followed by a phase of gradual recovery in sales and improved asset turnover. The rebound in efficiency and sales suggests strategic adjustments and operational improvements after the downturn observed in the mid-period years.
- Sales Trends
- Sharp decline from 2014 to 2016 followed by steady recovery through 2019.
- Property, Plant and Equipment
- Decreased significantly until 2016, then somewhat recovered and stabilized.
- Area Asset Turnover
- Declined through 2017 indicating reduced asset efficiency, with subsequent improvement by 2019.
- Overall Insight
- Initial contraction in business and assets followed by operational improvements and recovery in asset efficiency and sales volume.
Sales
Emerson Electric Co., sales by geographic area
US$ in millions
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Asia, Middle East & Africa | ||||||
| Europe | ||||||
| Total |
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).
- Americas Sales Trend
- Sales in the Americas show a noticeable decline from 12,770 million USD in 2014 to a low of 8,339 million USD in 2016. Following this low point, there is a gradual recovery, with sales increasing each year to reach 10,103 million USD by 2019, although not returning to the initial 2014 level.
- Asia, Middle East & Africa Sales Trend
- In the Asia, Middle East & Africa region, sales follow a pattern similar to the Americas, with a decline from 6,952 million USD in 2014 to 3,883 million USD in 2016. The region then experiences a steady increase, rising to 5,083 million USD by 2019. Despite the recovery, sales remain below the 2014 benchmark.
- Europe Sales Trend
- Europe presents a comparable trajectory, with sales decreasing from 4,815 million USD in 2014 to 2,300 million USD in 2016. Sales begin to recover afterward, reaching 3,185 million USD in 2019 but still falling short of the initial 2014 figure.
- Total Sales Trend
- Total sales across all geographic areas display a significant drop from 24,537 million USD in 2014 to 14,522 million USD in 2016. Subsequent years show a gradual increase, climbing to 18,371 million USD by 2019. This indicates overall recovery but with total sales remaining below the levels observed at the beginning of the period.
- General Insights
- All regions experienced a pronounced decrease in sales between 2014 and 2016, with Europe showing the sharpest proportional decline. From 2016 onwards, there is a consistent recovery in all markets, though none have yet to fully restore sales to 2014 values by 2019. This pattern suggests a cyclical or external factor impacting sales performance during the midperiod, followed by a recovery phase across all geographic segments.
Property, plant and equipment
Emerson Electric Co., property, plant and equipment by geographic area
US$ in millions
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Asia, Middle East & Africa | ||||||
| Europe | ||||||
| Total |
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).
- Americas
- The property, plant, and equipment (PP&E) values in the Americas region demonstrate a fluctuating trend over the six-year period. There is an initial decline from 2,342 million USD in 2014 to 1,983 million USD in 2016. This downturn is followed by a recovery phase, with amounts increasing to 2,339 million USD by 2019, nearly returning to the 2014 level. Overall, the values exhibit resilience with a dip mid-period and gradual improvement towards the end.
- Asia, Middle East & Africa
- This geographic segment shows variability with a moderate downward movement initially, decreasing from 657 million USD in 2014 to 513 million USD in 2016. Afterwards, a steady increase occurs, culminating in the highest recorded value of 671 million USD in 2019. This suggests a recovery and growth trend in PP&E investment or valuation in the latter half of the period.
- Europe
- The European region exhibits a pronounced decline in PP&E from 803 million USD in 2014 to 435 million USD in 2016, indicating significantly reduced asset levels or disposals in early years. This is followed by a partial recovery to 676 million USD in 2018 before a slight decline again to 632 million USD in 2019. The pattern reflects volatility with a notable mid-period trough and incomplete rebound.
- Total
- The aggregate total for all geographic regions mirrors the component trends, showing a sharp contraction from 3,802 million USD in 2014 to 2,931 million USD in 2016. Subsequent years reveal a rebound, with total PP&E increasing to 3,642 million USD by 2019. Despite this recovery, the total value does not fully return to the initial 2014 level, indicating an overall net decrease across the six-year horizon.
- Insight Summary
- The asset base in property, plant, and equipment presents a cyclical pattern with a notable decline period centered around 2016, possibly linked to strategic divestitures, restructuring, or market conditions affecting capital investment. Post-2016, each region shows signs of recovery, although European values remain below initial levels, suggesting regional challenges. The Americas and Asia/Middle East & Africa regions contribute predominantly to the recovery trend observed in total PP&E assets.