Emerson Electric Company (EMR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,588,000 | 2,298,000 | 2,318,000 | 2,076,000 | 8,051,000 | 9,957,000 | 2,046,000 | 2,271,000 | 1,804,000 | 2,529,000 | 6,929,000 | 4,726,000 | 2,354,000 | 2,860,000 | 2,342,000 | 2,197,000 | 3,315,000 | 2,450,000 | 2,583,000 | 1,635,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 128,000 | 117,000 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,742,000 | 7,592,000 | 7,664,000 | 7,765,000 | 5,032,000 | 6,614,000 | 7,549,000 | 8,160,000 | 7,777,000 | 8,812,000 | 8,072,000 | 5,331,000 | 6,246,000 | 6,670,000 | 6,294,000 | 6,376,000 | 5,785,000 | 5,985,000 | 7,940,000 | 6,340,000 |
| Cash ratio | 0.62 | 0.30 | 0.30 | 0.27 | 1.60 | 1.52 | 0.29 | 0.28 | 0.23 | 0.29 | 0.86 | 0.89 | 0.38 | 0.43 | 0.37 | 0.34 | 0.57 | 0.41 | 0.33 | 0.26 |
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 varied significantly over the past few quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In the most recent quarter, as of September 30, 2024, the cash ratio was 0.62, indicating that the company had $0.62 in cash for every $1 of current liabilities. This reflects a strong liquidity position, suggesting that Emerson Electric Company has sufficient cash on hand to meet its short-term obligations.
Looking back at historical data, the cash ratio fluctuated in a range between 0.23 and 1.60 over the past few years. The ratio peaked at 1.60 in the third quarter of 2023, indicating a period of exceptionally high liquidity. Conversely, the ratio dropped to 0.23 in the third quarter of 2022, signaling a comparatively lower level of cash reserves relative to current liabilities.
Overall, the trend in Emerson Electric Company's cash ratio indicates that the company has maintained adequate liquidity levels to cover its short-term obligations, with some fluctuations observed over time. Investors and stakeholders may monitor the cash ratio closely to assess the company's liquidity position and its ability to weather unforeseen financial challenges.
Peer comparison
Sep 30, 2024