Emerson Electric Company (EMR)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,827,000 | 15,124,000 | 16,394,000 | 17,488,000 | 18,549,000 | 19,642,000 | 19,229,000 | 18,908,000 | 18,579,000 | 18,267,000 | 17,878,000 | 17,095,000 | 16,795,000 | 16,785,000 | 17,198,000 | 17,968,000 | 18,376,000 | 18,372,000 | 18,289,000 | 18,061,000 |
| Property, plant and equipment | US$ in thousands | 2,701,000 | 2,363,000 | 2,268,000 | 2,263,000 | 2,263,000 | 2,239,000 | 3,359,000 | 3,567,000 | 3,685,000 | 3,738,000 | 3,664,000 | 3,663,000 | 3,693,000 | 3,688,000 | 3,565,000 | 3,553,000 | 3,633,000 | 3,642,000 | 3,614,000 | 3,615,000 |
| Fixed asset turnover | 5.86 | 6.40 | 7.23 | 7.73 | 8.20 | 8.77 | 5.72 | 5.30 | 5.04 | 4.89 | 4.88 | 4.67 | 4.55 | 4.55 | 4.82 | 5.06 | 5.06 | 5.04 | 5.06 | 5.00 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,827,000K ÷ $2,701,000K
= 5.86
The fixed asset turnover ratio for Emerson Electric Co. has shown fluctuation over the past eight quarters. The ratio ranged from a low of 5.30 in Q2 2022 to a high of 8.19 in Q1 2023. This indicates that Emerson Electric Co. generated varying levels of sales revenue relative to its investment in fixed assets during this period. A higher fixed asset turnover ratio generally suggests more efficient utilization of fixed assets to generate sales, while a lower ratio may indicate inefficiencies in asset utilization or potential overinvestment in fixed assets.
Overall, Emerson Electric Co. has demonstrated a generally healthy trend in fixed asset turnover, especially in Q3 2023 and Q2 2023 where the ratios were 7.25 and 7.73 respectively, indicating strong efficiency in generating sales from fixed assets. However, it is important to consider other factors such as industry norms, business strategies, and economic conditions when analyzing the significance of these fluctuations in the fixed asset turnover ratio for Emerson Electric Co.
Peer comparison
Dec 31, 2023
See also:
Emerson Electric Company Net Fixed Asset Turnover (Quarterly Data)