Emerson Electric Company (EMR)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,666,000 | 13,819,000 | 15,760,000 | 8,985,000 | 9,000,000 | 8,506,000 | 9,375,000 | 13,539,000 | 10,860,000 | 8,432,000 | 8,766,000 | 7,961,000 | 7,681,000 | 8,806,000 | 7,879,000 | 8,032,000 | 7,196,000 | 7,139,000 | 7,350,000 | 7,152,000 |
| 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 |
| Current ratio | 1.12 | 2.75 | 2.38 | 1.19 | 1.10 | 1.09 | 1.06 | 1.68 | 2.04 | 1.35 | 1.31 | 1.26 | 1.20 | 1.52 | 1.32 | 1.01 | 1.14 | 1.19 | 1.18 | 1.07 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,666,000K ÷ $7,765,000K
= 1.12
The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.
Emerson Electric Co.'s current ratio fluctuated significantly over the past eight quarters. In Q1 2024, the current ratio was 1.12, showing a weaker liquidity position compared to the previous quarter, where it was 2.75. This suggests that the company may be facing challenges in meeting its short-term obligations in Q1 2024.
The current ratio was relatively stable in Q3 and Q4 2023, standing at 2.38 and 1.19, respectively. This indicates that the company had a comfortable liquidity position during these periods. However, the ratio dropped to 1.10 in Q1 2023, signaling a potential strain on meeting short-term obligations at that time.
Looking further back, in Q4 2022 and Q3 2022, the current ratio was around 1.09 and 1.06, respectively, indicating a consistent but weaker liquidity position during those quarters. The ratio improved to 1.68 in Q2 2022, suggesting better liquidity management at that point in time.
Overall, Emerson Electric Co.'s current ratio has exhibited fluctuations, indicating varying levels of liquidity over the past eight quarters. Investors and stakeholders may want to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023