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)

		Sep 30, 2019	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
	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.	Emerson Electric Co.’s debt to equity ratio improved from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Emerson Electric Co.’s financial leverage ratio decreased from Q2 2019 to Q3 2019 but then increased from Q3 2019 to Q4 2019 exceeding Q2 2019 level.

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 deteriorated from Q2 2019 to Q3 2019 but then improved from Q3 2019 to Q4 2019 exceeding Q2 2019 level.

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

		Sep 30, 2019	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
	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 Q4 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.’s debt to equity ratio improved from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

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

		Sep 30, 2019	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
	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 Q4 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.’s debt to capital ratio improved from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

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

		Sep 30, 2019	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
	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 Q4 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.’s debt to assets ratio improved from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

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

		Sep 30, 2019	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
	Selected Financial Data (US$ in millions)
	Total assets
	Common stockholders’ equity
	Solvency Ratio
	Financial leverage¹

¹ Q4 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 decreased from Q2 2019 to Q3 2019 but then increased from Q3 2019 to Q4 2019 exceeding Q2 2019 level.

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

		Sep 30, 2019	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
	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 Q4 2019 Calculation
Interest coverage = (EBIT_{Q4 2019} + EBIT_{Q3 2019} + EBIT_{Q2 2019} + EBIT_{Q1 2019}) ÷ (Interest expense_{Q4 2019} + Interest expense_{Q3 2019} + Interest expense_{Q2 2019} + Interest expense_{Q1 2019})
= ( 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.’s interest coverage ratio deteriorated from Q2 2019 to Q3 2019 but then improved from Q3 2019 to Q4 2019 exceeding Q2 2019 level.

	Emerson Electric Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
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Long-term Trends
Analysis of Components of Financial Statements
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Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

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