Emerson Electric Company (EMR)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,435,000 | 15,115,000 | 19,622,000 | 18,267,000 | 16,785,000 |
| Property, plant and equipment | US$ in thousands | 2,807,000 | 2,363,000 | 2,239,000 | 3,738,000 | 3,688,000 |
| Fixed asset turnover | 6.21 | 6.40 | 8.76 | 4.89 | 4.55 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,435,000K ÷ $2,807,000K
= 6.21
Emerson Electric Company's fixed asset turnover has shown fluctuations over the past five years. The ratio ranged from 4.55 in 2020 to 8.76 in 2022, indicating varying levels of efficiency in generating sales from its fixed assets during this period. A higher fixed asset turnover ratio typically signifies that the company is effectively utilizing its fixed assets to generate revenue. However, a significant decrease in the ratio from 2022 to 2023 to 2024 could indicate a potential decrease in efficiency in utilizing fixed assets to generate sales. Further analysis is recommended to understand the factors contributing to these fluctuations in fixed asset turnover.
Peer comparison
Sep 30, 2024