Microsoft Excel LibreOffice Calc

Emerson Electric Co. (EMR)

Analysis of Long-term (Investment) Activity Ratios

Beginner level

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

Long-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Net fixed asset turnover 5.04 4.89 4.60 4.95 6.22 6.45
Total asset turnover 0.90 0.85 0.78 0.67 1.01 1.01
Equity turnover 2.23 1.95 1.75 1.92 2.76 2.42

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).

Long-term activity 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 ratio improved from 2017 to 2018 and from 2018 to 2019.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Emerson Electric Co.’s total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Emerson Electric Co.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Net Fixed Asset Turnover

Emerson Electric Co., net fixed asset turnover 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 sales 18,372  17,408  15,264  14,522  22,304  24,537 
Property, plant and equipment, net 3,642  3,562  3,321  2,931  3,585  3,802 
Long-term Activity Ratio
Net fixed asset turnover1 5.04 4.89 4.60 4.95 6.22 6.45
Benchmarks
Net Fixed Asset Turnover, Industry
Industrials 2.95 3.06 2.93 2.91 2.97 —

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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 18,372 ÷ 3,642 = 5.04

Long-term activity 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 ratio improved from 2017 to 2018 and from 2018 to 2019.

Total Asset Turnover

Emerson Electric Co., total asset turnover 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 sales 18,372  17,408  15,264  14,522  22,304  24,537 
Total assets 20,497  20,390  19,589  21,743  22,088  24,177 
Long-term Activity Ratio
Total asset turnover1 0.90 0.85 0.78 0.67 1.01 1.01
Benchmarks
Total Asset Turnover, Industry
Industrials 0.63 0.67 0.63 0.62 0.58 —

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
Total asset turnover = Net sales ÷ Total assets
= 18,372 ÷ 20,497 = 0.90

Long-term activity 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 ratio improved from 2017 to 2018 and from 2018 to 2019.

Equity Turnover

Emerson Electric Co., equity turnover 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 sales 18,372  17,408  15,264  14,522  22,304  24,537 
Common stockholders’ equity 8,233  8,947  8,718  7,568  8,081  10,119 
Long-term Activity Ratio
Equity turnover1 2.23 1.95 1.75 1.92 2.76 2.42
Benchmarks
Equity Turnover, Industry
Industrials 3.17 3.28 2.81 2.72 2.42 —

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
Equity turnover = Net sales ÷ Common stockholders’ equity
= 18,372 ÷ 8,233 = 2.23

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Emerson Electric Co.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019.