Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Equity (ROE)
Return on Assets (ROA)

Emerson Electric Co., profitability 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
	Return on Sales
	Gross profit margin
	Operating profit margin
	Net profit margin
	Return on Investment
	Return on equity (ROE)
	Return on assets (ROA)

Profitability ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.

Profitability ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.
ROA	A profitability ratio calculated as net income divided by total assets.

Emerson Electric Co., gross profit margin 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)
	Gross profit
	Net sales
	Profitability Ratio
	Gross profit margin¹

¹ Q3 2019 Calculation
Gross profit margin = 100 × (Gross profit_{Q3 2019} + Gross profit_{Q2 2019} + Gross profit_{Q1 2019} + Gross profit_{Q4 2018}) ÷ (Net sales_{Q3 2019} + Net sales_{Q2 2019} + Net sales_{Q1 2019} + Net sales_{Q4 2018})
= 100 × ( hidden + hidden + hidden + hidden ) ÷ ( hidden + hidden + hidden + hidden ) = hidden

Profitability ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.

Emerson Electric Co., operating profit margin 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)
	Earnings from continuing operations before interest and income taxes
	Net sales
	Profitability Ratio
	Operating profit margin¹

¹ Q3 2019 Calculation
Operating profit margin = 100 × (Earnings from continuing operations before interest and income taxes_{Q3 2019} + Earnings from continuing operations before interest and income taxes_{Q2 2019} + Earnings from continuing operations before interest and income taxes_{Q1 2019} + Earnings from continuing operations before interest and income taxes_{Q4 2018}) ÷ (Net sales_{Q3 2019} + Net sales_{Q2 2019} + Net sales_{Q1 2019} + Net sales_{Q4 2018})
= 100 × ( hidden + hidden + hidden + hidden ) ÷ ( hidden + hidden + hidden + hidden ) = hidden

Profitability ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.

Emerson Electric Co., net profit margin 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
	Net sales
	Profitability Ratio
	Net profit margin¹

¹ Q3 2019 Calculation
Net profit margin = 100 × (Net earnings common stockholders_{Q3 2019} + Net earnings common stockholders_{Q2 2019} + Net earnings common stockholders_{Q1 2019} + Net earnings common stockholders_{Q4 2018}) ÷ (Net sales_{Q3 2019} + Net sales_{Q2 2019} + Net sales_{Q1 2019} + Net sales_{Q4 2018})
= 100 × ( hidden + hidden + hidden + hidden ) ÷ ( hidden + hidden + hidden + hidden ) = hidden

Profitability ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.

Emerson Electric Co., ROE 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
	Common stockholders’ equity
	Profitability Ratio
	ROE¹

¹ Q3 2019 Calculation
ROE = 100 × (Net earnings common stockholders_{Q3 2019} + Net earnings common stockholders_{Q2 2019} + Net earnings common stockholders_{Q1 2019} + Net earnings common stockholders_{Q4 2018}) ÷ Common stockholders’ equity
= 100 × ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

Profitability ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.

Emerson Electric Co., ROA 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
	Total assets
	Profitability Ratio
	ROA¹

¹ Q3 2019 Calculation
ROA = 100 × (Net earnings common stockholders_{Q3 2019} + Net earnings common stockholders_{Q2 2019} + Net earnings common stockholders_{Q1 2019} + Net earnings common stockholders_{Q4 2018}) ÷ Total assets
= 100 × ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

Profitability ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.

	Emerson Electric Co.	Other companies (not purchased previously)
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Discounted Cash Flow (DCF) Valuation
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Analysis
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Emerson Electric Co. (EMR)

Analysis of Profitability Ratios
Quarterly Data

Profitability Ratios (Summary)

Gross Profit Margin

Operating Profit Margin

Net Profit Margin

Return on Equity (ROE)

Return on Assets (ROA)