Emerson Electric Company (EMR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 1,494,000 | 1,603,000 | 1,384,000 |
| Short-term investments | US$ in thousands | — | — | 128,000 | 117,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 5,976,000 | 6,218,000 | 6,714,000 |
| Cash ratio | 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 | 0.25 | 0.26 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,076,000K
+ $—K)
÷ $7,765,000K
= 0.27
The cash ratio of Emerson Electric Co. has shown significant fluctuations in recent quarters. In Q4 2023, the cash ratio was high at 1.85, indicating that the company had $1.85 of cash and cash equivalents for every dollar of current liabilities. This suggests a strong ability to cover short-term obligations with cash on hand.
However, in Q1 2024, the cash ratio dropped to 0.45, signaling a considerable decrease in liquidity compared to the previous quarter. This could raise concerns about the company's ability to meet its short-term financial commitments solely from cash reserves.
Overall, the cash ratio has displayed a volatile trend over the quarters provided, with ratios ranging from as low as 0.43 to as high as 1.85. Investors and analysts should closely monitor changes in the cash ratio to assess Emerson Electric Co.'s liquidity position and ability to manage short-term financial obligations using cash resources.
Peer comparison
Dec 31, 2023