Emerson Electric Company (EMR)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,588,000 | 8,051,000 | 1,804,000 | 2,354,000 | 3,315,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,742,000 | 5,032,000 | 7,777,000 | 6,246,000 | 5,785,000 |
| Cash ratio | 0.62 | 1.60 | 0.23 | 0.38 | 0.57 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,588,000K
+ $—K)
÷ $5,742,000K
= 0.62
The cash ratio of Emerson Electric Company has fluctuated over the past five years. In 2024, the cash ratio was 0.62, indicating that the company had $0.62 in cash and cash equivalents for every $1 of current liabilities. This represents a significant decrease from the previous year's ratio of 1.60.
The cash ratio in 2022 was 0.23, showing a substantial decrease from the prior year, reflecting potential liquidity constraints. However, in 2021 and 2020, the cash ratio improved to 0.38 and 0.57, respectively, which suggests that the company had better liquidity positions during those years.
Overall, the downward trend in the cash ratio from 2023 to 2024 may indicate a potential liquidity concern for Emerson Electric Company, and further analysis of its cash management practices and ability to meet short-term obligations may be warranted.
Peer comparison
Sep 30, 2024