Emerson Electric Company (EMR)

Total 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
Total assets	US$ in thousands	42,746,000	35,672,000	24,715,000	22,882,000	20,497,000
Total asset turnover		0.35	0.55	0.74	0.73	0.90

September 30, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $15,115,000K ÷ $42,746,000K
= 0.35

The total asset turnover ratio for Emerson Electric Co. has shown a declining trend over the past five years, decreasing from 0.90 in 2019 to 0.35 in 2023. This indicates a reduction in the company's ability to generate sales from its total assets. A lower total asset turnover ratio may imply that the company is less efficient in utilizing its assets to generate revenue.

The declining trend in total asset turnover may be a cause for concern as it reflects a potential decrease in operational efficiency and productivity. It could suggest that the company is not effectively utilizing its assets to generate sales, which may lead to lower profitability and return on investment.

Further analysis and investigation into the factors affecting the efficient utilization of assets, such as changes in the company's business model, asset management strategies, or market dynamics, would be required to determine the underlying reasons for the declining total asset turnover ratio.