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

Solvency Ratios (Summary)
Debt to Equity
Debt to Capital
Debt to Assets
Financial Leverage
Interest Coverage

Emerson Electric Co., solvency ratios (quarterly data)

		Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012
	Debt Ratios
	Debt to equity
	Debt to capital
	Debt to assets
	Financial leverage
	Coverage Ratios
	Interest coverage

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Emerson Electric Co.’s financial leverage ratio declined from Q1 2019 to Q2 2019 and from Q2 2019 to Q3 2019.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.

Emerson Electric Co., debt to equity calculation (quarterly data)

		Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012
	Selected Financial Data (US$ in millions)
	Short-term borrowings and current maturities of long-term debt
	Long-term debt, excluding current maturities
	Total debt

	Common stockholders’ equity
	Solvency Ratio
	Debt to equity¹

¹ Q3 2019 Calculation
Debt to equity = Total debt ÷ Common stockholders’ equity
= hidden ÷ hidden = hidden

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.

Emerson Electric Co., debt to capital calculation (quarterly data)

		Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012
	Selected Financial Data (US$ in millions)
	Short-term borrowings and current maturities of long-term debt
	Long-term debt, excluding current maturities
	Total debt
	Common stockholders’ equity
	Total capital
	Solvency Ratio
	Debt to capital¹

¹ Q3 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= hidden ÷ hidden = hidden

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., debt to assets calculation (quarterly data)

		Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012
	Selected Financial Data (US$ in millions)
	Short-term borrowings and current maturities of long-term debt
	Long-term debt, excluding current maturities
	Total debt

	Total assets
	Solvency Ratio
	Debt to assets¹

¹ Q3 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= hidden ÷ hidden = hidden

Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.

Emerson Electric Co., financial leverage calculation (quarterly data)

		Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012
	Selected Financial Data (US$ in millions)
	Total assets
	Common stockholders’ equity
	Solvency Ratio
	Financial leverage¹

¹ Q3 2019 Calculation
Financial leverage = Total assets ÷ Common stockholders’ equity
= hidden ÷ hidden = hidden

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 declined from Q1 2019 to Q2 2019 and from Q2 2019 to Q3 2019.

Emerson Electric Co., interest coverage calculation (quarterly data)

		Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012
	Selected Financial Data (US$ in millions)
	Net earnings common stockholders
	Add: Net income attributable to noncontrolling interest
	Less: Discontinued operations, net of tax
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Solvency Ratio
	Interest coverage¹

¹ Q3 2019 Calculation
Interest coverage = (EBIT_{Q3 2019} + EBIT_{Q2 2019} + EBIT_{Q1 2019} + EBIT_{Q4 2018}) ÷ (Interest expense_{Q3 2019} + Interest expense_{Q2 2019} + Interest expense_{Q1 2019} + Interest expense_{Q4 2018})
= ( hidden + hidden + hidden + hidden ) ÷ ( hidden + hidden + hidden + hidden ) = hidden

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.

	Emerson Electric Co.	Other companies (not purchased previously)
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Long-term Trends
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Common-Size Financial Statements
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Discounted Cash Flow (DCF) Valuation
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Long-term Trends
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Emerson Electric Co. (EMR)

Analysis of Solvency Ratios
Quarterly Data

Solvency Ratios (Summary)

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage