.Long-term (Investment) Activity Analysis
Difficulty: Beginner
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Ratios (Summary)
Emerson Electric Co., long-term (investment) activity ratios
| Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| | Net fixed asset turnover | ||||||
| | Total asset turnover | ||||||
| | Equity turnover |
Source: Based on data from Emerson Electric Co. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Emerson Electric Co.'s net fixed asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Emerson Electric Co.'s total asset turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders' equity. | Emerson Electric Co.'s equity turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
Net Fixed Asset Turnover
Emerson Electric Co., net fixed asset turnover calculation, comparison to benchmarks
| Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Net sales | ||||||
| | Property, plant and equipment, net | ||||||
| Ratio | |||||||
| | Net fixed asset turnover1 | ||||||
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Industry | |||||||
| Industrials | |||||||
Source: Based on data from Emerson Electric Co. Annual Reports
2017 Calculations
1 Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Emerson Electric Co.'s net fixed asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
Total Asset Turnover
Emerson Electric Co., total asset turnover calculation, comparison to benchmarks
| Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Net sales | ||||||
| | Total assets | ||||||
| Ratio | |||||||
| | Total asset turnover1 | ||||||
| Benchmarks | |||||||
| Total Asset Turnover, Industry | |||||||
| Industrials | |||||||
Source: Based on data from Emerson Electric Co. Annual Reports
2017 Calculations
1 Total asset turnover = Net sales ÷ Total assets
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Emerson Electric Co.'s total asset turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Equity Turnover
Emerson Electric Co., equity turnover calculation, comparison to benchmarks
| Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | Sep 30, 2013 | Sep 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Net sales | ||||||
| | Common stockholders' equity | ||||||
| Ratio | |||||||
| | Equity turnover1 | ||||||
| Benchmarks | |||||||
| Equity Turnover, Industry | |||||||
| Industrials | |||||||
Source: Based on data from Emerson Electric Co. Annual Reports
2017 Calculations
1 Equity turnover = Net sales ÷ Common stockholders' equity
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders' equity. | Emerson Electric Co.'s equity turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
