Emerson Electric Company (EMR)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,115,000 | 19,622,000 | 18,267,000 | 16,785,000 | 18,372,000 |
| Property, plant and equipment | US$ in thousands | 2,363,000 | 2,239,000 | 3,738,000 | 3,688,000 | 3,642,000 |
| Fixed asset turnover | 6.40 | 8.76 | 4.89 | 4.55 | 5.04 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,115,000K ÷ $2,363,000K
= 6.40
The fixed asset turnover ratio for Emerson Electric Co. has exhibited variability over the past five years. The company's ability to generate sales from its fixed assets has improved steadily, with the ratio increasing from 4.55 in 2020 to 6.42 in 2023. This indicates that Emerson Electric Co. has become more efficient in utilizing its fixed assets to generate revenue. However, it is noteworthy that there was a dip in 2021 before the ratio rebounded to its current level. Overall, the upward trend in the fixed asset turnover ratio suggests that the company has been effectively utilizing its fixed assets to drive sales growth.
Peer comparison
Sep 30, 2023