Emerson Electric Company (EMR)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 17,393,000 | 16,864,000 | 16,417,000 | 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 |
| Property, plant and equipment | US$ in thousands | 2,807,000 | 2,688,000 | 2,689,000 | 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 |
| Fixed asset turnover | 6.20 | 6.27 | 6.11 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,393,000K ÷ $2,807,000K
= 6.20
Emerson Electric Company's fixed asset turnover ratio has shown fluctuations over the past 20 quarters. The ratio measures the company's ability to generate sales revenue from its investment in fixed assets.
The trend indicates that the company's efficiency in utilizing its fixed assets to generate sales has varied significantly. The ratio ranged from a high of 8.77 in Sep 30, 2022, to a low of 4.55 in both Dec 31, 2020, and Sep 30, 2020.
Overall, the fixed asset turnover has generally been on a declining trend since Sep 30, 2022, when it peaked at 8.77. However, it picked up in the most recent quarter at 6.20 in Sep 30, 2024, indicating an improvement in the company's ability to generate sales relative to its fixed asset base.
Further analysis is required to understand the reasons behind these fluctuations and to assess whether the recent increase in the ratio is sustainable or a temporary improvement.
Peer comparison
Sep 30, 2024
See also:
Emerson Electric Company Net Fixed Asset Turnover (Quarterly Data)