Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Emerson Electric Co. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Emerson Electric Co. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Emerson Electric Co., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
- Gross Profit Margin
- The gross profit margin remains relatively stable throughout the observed period, fluctuating modestly around the 41% to 43% range. Initial values in late 2014 start around 41.4%, with a gradual upward trend evident into late 2016, peaking slightly above 43%. Following this peak, the margin marginally declines but maintains a level above 42% until early 2020, indicating consistent efficiency in managing production costs relative to sales.
- Operating Profit Margin
- The operating profit margin shows more variability compared to the gross profit margin. Starting near 14.4% in late 2014, there is a noticeable increase through mid-2015 reaching close to 19.4%, reflecting improved operational efficiency or cost management. However, the margin declines during 2016 and fluctuates in the range of approximately 15.5% to 17.6% thereafter. The later periods, particularly in 2019 and early 2020, denote a slight downward trend, which could imply rising operating expenses or pressure on operational income.
- Net Profit Margin
- The net profit margin demonstrates an overall increasing trend with fluctuations. Beginning around 8.75% in late 2014, it rises steadily to surpass 12% in multiple quarters post-2017, peaking around 12.8%. Some quarters, especially in 2016 and early 2017, show dips near 9.8% to 10.1%, but recovery follows soon after. This trend suggests improved bottom-line profitability over time, potentially due to higher revenues, cost control, or tax and interest impacts.
- Return on Equity (ROE)
- The ROE exhibits notable volatility and a generally increasing trend over the time frame. Starting from 21.22% at the end of 2014, it rises sharply to a peak exceeding 33.5% in mid-2015, indicating strong returns relative to shareholder equity at that point. A subsequent decline ensues, with values in the range of about 16% to 27% during 2016-2019. Late 2019 to early 2020 again shows an upward movement, nearing 29%. These fluctuations may reflect changes in profitability, leverage, or equity base shifts.
- Return on Assets (ROA)
- The ROA generally follows an upward trajectory with some intermittent declines. From approximately 8.9% in late 2014, it reaches above 12% by late 2015, signifying improved asset utilization to generate profits. It then decreases to a range near 7.5% during 2016, before recovering and stabilizing between 9% and 11% in the later years. A slight downward trend is evident towards early 2020. This indicates adjustments in asset efficiency and profitability over the period.
Return on Sales
Return on Investment
Gross Profit Margin
Emerson Electric Co., gross profit margin calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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) | ||||||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Gross profit margin = 100
× (Gross profitQ2 2020
+ Gross profitQ1 2020
+ Gross profitQ4 2019
+ Gross profitQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit exhibited a generally fluctuating trend over the analyzed periods. Initially, there was steady growth from December 2013 to September 2014, with gross profit increasing from 2,236 million US dollars to 2,889 million US dollars. Subsequently, a decline occurred through December 2014 to December 2015, reaching a notable low level around 1,414 million US dollars. Following this dip, the gross profit resumed a gradual upward trajectory, peaking again near 2,128 million US dollars by September 2019, before slightly pulling back towards the end of the series in the first quarter of 2020.
Net sales followed a somewhat similar pattern, increasing steadily from December 2013 through September 2014, from 5,606 million to 6,807 million US dollars. A considerable drop then ensued, bottoming out around 3,337 million US dollars by December 2015. Thereafter, net sales recovered progressively, reaching approximately 4,971 million US dollars by the end of 2019. The first quarter of 2020 shows a marginal stabilization in net sales, remaining near 4,151 million US dollars.
The gross profit margin data, available for the latter periods, demonstrated stable performance around the 41% to 43% range. Starting from 41.4% in December 2014, the margin consistently edged upward and remained relatively consistent around 42% to 43% between 2015 and 2020. This consistency suggests effective management of cost of goods sold relative to sales revenue over the later periods analyzed.
- Gross Profit
- Growth from late 2013 through 2014, followed by a significant decline in 2015, then recovery and growth through late 2019, with a slight decrease in early 2020.
- Net Sales
- Initial increase until late 2014, sharp decline during 2015, then steady recovery through 2019, stabilizing in early 2020.
- Gross Profit Margin
- Stable margins around 41% to 43% during the periods measured, indicating consistent operational efficiency.
Operating Profit Margin
Emerson Electric Co., operating profit margin calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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) | ||||||||||||||||||||||||||||||||||
| Earnings from continuing operations before interest and income taxes | ||||||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Operating profit margin = 100
× (Earnings from continuing operations before interest and income taxesQ2 2020
+ Earnings from continuing operations before interest and income taxesQ1 2020
+ Earnings from continuing operations before interest and income taxesQ4 2019
+ Earnings from continuing operations before interest and income taxesQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings from Continuing Operations Before Interest and Income Taxes
- The earnings demonstrate considerable volatility across the observed periods. Initial values around the end of 2013 and early 2014 show moderate earnings fluctuating between 697 million and 1118 million US dollars. A notable peak occurs in early 2015 with earnings rising to 1644 million, followed by a sharp decline in subsequent quarters, dropping to lows near 481 million by the end of 2015. From 2016 to early 2018, earnings reveal a more stabilized but generally moderate level, ranging mostly between 500 million and 700 million US dollars, with occasional fluctuations. In late 2018 and throughout 2019, earnings show an upward trend, reaching values above 800 million, except for a decline in early 2020, where earnings drop again to 458 million, possibly reflecting external influences affecting profitability.
- Net Sales
- Net sales present a broadly increasing trend with some periods of decline. Starting at approximately 5606 million US dollars at the end of 2013, sales rise through mid-2014, peaking near 6807 million in the third quarter of 2014. This is followed by a sharp reduction in the last quarter of 2014 and continuing into 2015 with values as low as 3337 million. Afterward, sales gradually recover and demonstrate growth through 2016 and 2017, ranging between 3200 million and 4400 million. The trend carries forward with relatively strong growth into 2018 and 2019, with sales climbing toward 4971 million by the end of 2019. However, a decline is observed in early 2020 as net sales drop to approximately 4151 million US dollars, which may correlate with the decrease in earnings noted for the same period.
- Operating Profit Margin
- Operating profit margin data is available from the fourth quarter of 2014 onward, showing a generally stable and healthy margin profile. The margin starts at around 14.44% and peaks in 2015 near 19.96%, indicating strong profitability relative to sales during that period. Following the peak, the margin experiences a slight declining trend, mostly hovering between approximately 15.5% and 17.6% through to the first quarter of 2020. This suggests a consistent operational efficiency despite fluctuations in earnings and sales volumes. Notably, the margins remain within a relatively narrow range, indicating control over operating costs relative to revenue.
Net Profit Margin
Emerson Electric Co., net profit margin calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | ||||||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Net profit margin = 100
× (Net earnings common stockholdersQ2 2020
+ Net earnings common stockholdersQ1 2020
+ Net earnings common stockholdersQ4 2019
+ Net earnings common stockholdersQ3 2019)
÷ (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The data reveals distinct trends in net earnings, net sales, and net profit margin over the observed quarterly periods.
- Net Earnings Common Stockholders
- Net earnings demonstrate considerable volatility throughout the timeline. Early on, the earnings fluctuated notably, with values increasing from 462 million US$ in December 2013 to a peak of 973 million US$ in March 2015, followed by several rises and dips in subsequent quarters. A significant drop is observed following the peak, with earnings declining to 292 million US$ in March 2017. Afterwards, the earnings display a moderate recovery trend, reaching levels above 700 million US$ by late 2018 but falling again by March 2020 to 517 million US$. Overall, net earnings show a pattern of repeated rises and falls without a strong, consistent upward or downward trajectory.
- Net Sales
- Net sales exhibit a decreasing trend in the initial quarters, from 5606 million US$ at the end of 2013 to a low of 3216 million US$ by December 2016, indicating a considerable decline over this period. After this trough, net sales rebound consistently, rising to nearly 5000 million US$ around the end of 2018 before experiencing a slight decline again in early 2020. The sales data suggests a period of contraction followed by recovery, although the values at the end of the period remain around the levels seen earlier in the timeline, indicating cyclical behavior rather than sustained growth.
- Net Profit Margin
- Net profit margin data is available from late 2014 onward and reveals a generally positive, stable level with some fluctuations. The margin increased from approximately 8.75% to over 12% in several quarters through 2015 and into 2016, before showing moderate oscillations around 10% to 12% over subsequent periods. Peak margins of approximately 12.8% were recorded towards the end of 2018 and the beginning of 2019. The margin remains relatively stable near the 12% mark through early 2020, indicating consistent profitability relative to sales despite variations in net earnings and net sales over the same time span.
In summary, the financial data presents a corporate performance characterized by cyclical fluctuations in earnings and sales, with a robust net profit margin that indicates efficient cost management or pricing power despite variations in revenue and earnings levels. The recovery in sales after a marked decline and the stabilization of profit margins are noteworthy aspects of this financial pattern.
Return on Equity (ROE)
Emerson Electric Co., ROE calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | ||||||||||||||||||||||||||||||||||
| Common stockholders’ equity | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
ROE = 100
× (Net earnings common stockholdersQ2 2020
+ Net earnings common stockholdersQ1 2020
+ Net earnings common stockholdersQ4 2019
+ Net earnings common stockholdersQ3 2019)
÷ Common stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends concerning net earnings, common stockholders’ equity, and return on equity (ROE) for the examined period.
- Net Earnings of Common Stockholders
- Net earnings depict a fluctuating pattern across the quarters. Starting at 462 million US dollars at the end of 2013, earnings exhibited intermittent growth and decline phases. Notable peaks are observed around March 2015 (973 million) and June 2018 (712 million), signifying periods of enhanced profitability. Conversely, lower earnings, such as 292 million in March 2017 and 309 million in December 2016, indicate phases of subdued performance. The most recent figure, 517 million in March 2020, shows a moderate level relative to historical values but is beneath the pronounced peaks observed earlier.
- Common Stockholders’ Equity
- Common stockholders’ equity shows a gradual decreasing trend over the analyzed intervals. Beginning at 10,741 million US dollars at the end of 2013, equity decreased progressively with some fluctuations, reaching a low of 7,456 million in December 2015. Thereafter, a pattern of mild recovery and stabilization is seen, ranging around the 8,000 to 8,700 million levels through 2016 to 2019, before declining again to 7,517 million by March 2020. This suggests a contraction in equity base over time, possibly due to share repurchases, dividend payments, or other capital structure changes.
- Return on Equity (ROE)
- ROE demonstrates strong profitability trends with some variability. The metric shows high levels consistently exceeding 20%, with peaks above 30% recorded between December 2014 and December 2015, indicating highly effective utilization of equity during that timeframe. Subsequently, ROE stabilizes in the 18 to 28% range, maintaining robust returns for shareholders. The most recent quarter at 25.73% remains well within this high-performance zone. The earlier absence of ROE values limits longitudinal analysis but the available data confirm sustained profitability relative to equity.
Overall, the company displays periods of high profitability as reflected by elevated net earnings and ROE values, although net earnings are somewhat volatile quarter to quarter. The declining trend in common stockholders’ equity over the period suggests changes in financial structure or capital management strategies. Despite the reduction in equity, the ability to maintain strong ROE levels points to efficient capital utilization and profitability stability.
Return on Assets (ROA)
Emerson Electric Co., ROA calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | ||||||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
ROA = 100
× (Net earnings common stockholdersQ2 2020
+ Net earnings common stockholdersQ1 2020
+ Net earnings common stockholdersQ4 2019
+ Net earnings common stockholdersQ3 2019)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data reflects fluctuations in net earnings, total assets, and return on assets (ROA) over the analyzed periods.
- Net Earnings
- Net earnings for common stockholders exhibit notable variability without a clear upward or downward trend across the periods. Earnings peak significantly at multiple points, such as $973 million in March 2015 and $712 million at the end of 2018. However, there are corresponding troughs, for example, $292 million in March 2017 and $309 million in December 2016. Such volatility suggests episodic influences on profitability. There is a reoccurring pattern of recovery following dips, indicating resilience in earnings generation despite interim declines.
- Total Assets
- Total assets demonstrate a general downward trend from the start of the dataset through early 2017, decreasing from approximately $24.1 billion at the end of 2013 to a low near $17.3 billion by March 2017. Subsequently, total assets begin a gradual recovery phase, climbing back to over $21.7 billion by mid-2020. This pattern may reflect asset optimization strategies, divestitures, or market conditions impacting asset valuation during the earlier period, followed by reinvestment or acquisitions leading to asset base expansion later in the data range.
- Return on Assets (ROA)
- ROA displays some fluctuation but generally remains within a range of roughly 7.5% to 12.3% for the available data. The highest observed ROA values are around 12.27% in December 2014, which coincides with a high net earnings period, followed by a few quarters of moderate decline. Post-2016, ROA maintains a fairly stable pattern, averaging between 9% and 11%, indicating consistent efficiency in asset usage to generate profit despite changes in asset base and earnings.
Overall, the data reveals episodic earnings volatility alongside a contraction and subsequent recovery of total assets. Despite these fluctuations, ROA remains relatively stable, suggesting effective management of asset utilization to sustain profitability. The intermittent nature of earnings highs and lows, coupled with asset base adjustments, point to dynamic business conditions and responsive financial management strategies over the examined timeframe.