Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Emerson Electric Co. (NYSE:EMR)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Solvency Ratios

Beginner level

Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)

Emerson Electric Co., solvency ratios

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Debt Ratios
Debt to equity 0.69 0.53 0.53 0.88 0.85 0.60
Debt to capital 0.41 0.35 0.35 0.47 0.46 0.37
Debt to assets 0.28 0.23 0.24 0.31 0.31 0.25
Financial leverage 2.49 2.28 2.25 2.87 2.73 2.39
Coverage Ratios
Interest coverage 15.22 14.20 12.62 11.77 21.81 16.36
Fixed charge coverage 6.88 6.54 5.77 5.75 8.04 6.32

Based on: 10-K (filing date: 2019-11-18), 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Emerson Electric Co.’s debt to equity ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Emerson Electric Co.’s debt to capital ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Emerson Electric Co.’s debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Emerson Electric Co.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Emerson Electric Co.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Emerson Electric Co.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Emerson Electric Co., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 1,444  1,623  862  2,584  2,553  2,465 
Long-term debt, excluding current maturities 4,277  3,137  3,794  4,062  4,289  3,559 
Total debt 5,721  4,760  4,656  6,646  6,842  6,024 
 
Common stockholders’ equity 8,233  8,947  8,718  7,568  8,081  10,119 
Solvency Ratio
Debt to equity1 0.69 0.53 0.53 0.88 0.85 0.60
Benchmarks
Debt to Equity, Industry
Industrials 1.80 1.74 1.55 1.46 — —

Based on: 10-K (filing date: 2019-11-18), 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19).

1 2019 Calculation
Debt to equity = Total debt ÷ Common stockholders’ equity
= 5,721 ÷ 8,233 = 0.69

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Emerson Electric Co.’s debt to equity ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Capital

Emerson Electric Co., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 1,444  1,623  862  2,584  2,553  2,465 
Long-term debt, excluding current maturities 4,277  3,137  3,794  4,062  4,289  3,559 
Total debt 5,721  4,760  4,656  6,646  6,842  6,024 
Common stockholders’ equity 8,233  8,947  8,718  7,568  8,081  10,119 
Total capital 13,954  13,707  13,374  14,214  14,923  16,143 
Solvency Ratio
Debt to capital1 0.41 0.35 0.35 0.47 0.46 0.37
Benchmarks
Debt to Capital, Industry
Industrials 0.64 0.64 0.61 0.59 — —

Based on: 10-K (filing date: 2019-11-18), 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,721 ÷ 13,954 = 0.41

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Emerson Electric Co.’s debt to capital ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Assets

Emerson Electric Co., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 1,444  1,623  862  2,584  2,553  2,465 
Long-term debt, excluding current maturities 4,277  3,137  3,794  4,062  4,289  3,559 
Total debt 5,721  4,760  4,656  6,646  6,842  6,024 
 
Total assets 20,497  20,390  19,589  21,743  22,088  24,177 
Solvency Ratio
Debt to assets1 0.28 0.23 0.24 0.31 0.31 0.25
Benchmarks
Debt to Assets, Industry
Industrials 0.33 0.33 0.32 0.31 — —

Based on: 10-K (filing date: 2019-11-18), 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,721 ÷ 20,497 = 0.28

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Emerson Electric Co.’s debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Financial Leverage

Emerson Electric Co., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Total assets 20,497  20,390  19,589  21,743  22,088  24,177 
Common stockholders’ equity 8,233  8,947  8,718  7,568  8,081  10,119 
Solvency Ratio
Financial leverage1 2.49 2.28 2.25 2.87 2.73 2.39
Benchmarks
Financial Leverage, Industry
Industrials 5.51 5.33 4.79 4.67 — —

Based on: 10-K (filing date: 2019-11-18), 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19).

1 2019 Calculation
Financial leverage = Total assets ÷ Common stockholders’ equity
= 20,497 ÷ 8,233 = 2.49

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Emerson Electric Co.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Emerson Electric Co., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Net earnings common stockholders 2,306  2,203  1,518  1,635  2,710  2,147 
Add: Net income attributable to noncontrolling interest 22  21  32  29  23  37 
Less: Discontinued operations, net of tax —  —  (125) 45  —  — 
Add: Income tax expense 531  443  660  697  1,428  1,164 
Add: Interest expense 201  202  201  215  200  218 
Earnings before interest and tax (EBIT) 3,060  2,869  2,536  2,531  4,361  3,566 
Solvency Ratio
Interest coverage1 15.22 14.20 12.62 11.77 21.81 16.36
Benchmarks
Interest Coverage, Industry
Industrials 6.48 6.39 7.20 7.49 — —

Based on: 10-K (filing date: 2019-11-18), 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,060 ÷ 201 = 15.22

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Emerson Electric Co.’s interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

Emerson Electric Co., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Net earnings common stockholders 2,306  2,203  1,518  1,635  2,710  2,147 
Add: Net income attributable to noncontrolling interest 22  21  32  29  23  37 
Less: Discontinued operations, net of tax —  —  (125) 45  —  — 
Add: Income tax expense 531  443  660  697  1,428  1,164 
Add: Interest expense 201  202  201  215  200  218 
Earnings before interest and tax (EBIT) 3,060  2,869  2,536  2,531  4,361  3,566 
Add: Rent expense 285  279  289  273  391  411 
Earnings before fixed charges and tax 3,345  3,148  2,825  2,804  4,752  3,977 
 
Interest expense 201  202  201  215  200  218 
Rent expense 285  279  289  273  391  411 
Fixed charges 486  481  490  488  591  629 
Solvency Ratio
Fixed charge coverage1 6.88 6.54 5.77 5.75 8.04 6.32
Benchmarks
Fixed Charge Coverage, Industry
Industrials 4.18 3.94 4.32 4.50 — —

Based on: 10-K (filing date: 2019-11-18), 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,345 ÷ 486 = 6.88

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Emerson Electric Co.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.