Emerson Electric Company (EMR)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,192,000 | 13,819,000 | 8,506,000 | 8,432,000 | 8,806,000 |
| Total current liabilities | US$ in thousands | 5,742,000 | 5,032,000 | 7,777,000 | 6,246,000 | 5,785,000 |
| Current ratio | 1.77 | 2.75 | 1.09 | 1.35 | 1.52 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,192,000K ÷ $5,742,000K
= 1.77
The current ratio of Emerson Electric Company has shown fluctuating trends over the past five years, ranging from a low of 1.09 in 2022 to a high of 2.75 in 2023. The ratio indicates the company's ability to cover its short-term liabilities with its current assets. A higher current ratio suggests a stronger liquidity position, as seen in 2023, while a lower ratio may indicate potential liquidity challenges, as observed in 2022.
In 2024, the current ratio stands at 1.77, representing an improvement from the previous year but still below the levels seen in 2023. Despite the increase, the current ratio remains relatively healthy, indicating that Emerson Electric has sufficient current assets to meet its short-term obligations. However, the downward trend from 2023 to 2024 should be monitored to ensure that the company maintains adequate liquidity levels in the future.
Peer comparison
Sep 30, 2024