Emerson Electric Co. (EMR)

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Emerson Electric Co., long-term (investment) activity ratios

	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
Net fixed asset turnover	4.89	4.60	4.95	6.22	6.45	6.84
Total asset turnover	0.85	0.78	0.67	1.01	1.01	1.00
Equity turnover	1.95	1.75	1.92	2.76	2.42	2.33

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 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	Emerson Electric Co.'s total asset turnover improved from 2016 to 2017 and from 2017 to 2018.
Equity turnover	An activity ratio calculated as total revenue divided by shareholders' equity.	Emerson Electric Co.'s equity turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Emerson Electric Co., net fixed asset turnover calculation, comparison to benchmarks

	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
Selected Financial Data (USD $ in millions)
Net sales	17,408	15,264	14,522	22,304	24,537	24,669
Property, plant and equipment, net	3,562	3,321	2,931	3,585	3,802	3,605
Ratio
Net fixed asset turnover¹	4.89	4.60	4.95	6.22	6.45	6.84
Benchmarks
Net Fixed Asset Turnover, Industry
Industrials	–	2.93	2.90	2.97	2.98	2.94

2018 Calculations

¹ Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 17,408 ÷ 3,562 = 4.89

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 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Emerson Electric Co., total asset turnover calculation, comparison to benchmarks

	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
Selected Financial Data (USD $ in millions)
Net sales	17,408	15,264	14,522	22,304	24,537	24,669
Total assets	20,390	19,589	21,743	22,088	24,177	24,711
Ratio
Total asset turnover¹	0.85	0.78	0.67	1.01	1.01	1.00
Benchmarks
Total Asset Turnover, Industry
Industrials	–	0.63	0.62	0.58	0.53	0.52

2018 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 17,408 ÷ 20,390 = 0.85

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 improved from 2016 to 2017 and from 2017 to 2018.

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

	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014	Sep 30, 2013
Selected Financial Data (USD $ in millions)
Net sales	17,408	15,264	14,522	22,304	24,537	24,669
Common stockholders' equity	8,947	8,718	7,568	8,081	10,119	10,585
Ratio
Equity turnover¹	1.95	1.75	1.92	2.76	2.42	2.33
Benchmarks
Equity Turnover, Industry
Industrials	–	2.81	2.72	2.41	2.15	1.90

2018 Calculations

¹ Equity turnover = Net sales ÷ Common stockholders' equity
= 17,408 ÷ 8,947 = 1.95

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 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Long-term (Investment) Activity Analysis