Emerson Electric Company (EMR)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,192,000 | 8,820,000 | 9,009,000 | 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 |
| 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 |
| Current ratio | 1.77 | 1.16 | 1.18 | 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 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,192,000K ÷ $5,742,000K
= 1.77
The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger liquidity position.
Looking at the current ratio of Emerson Electric Company over the past few quarters, we see some fluctuation. As of September 30, 2024, the current ratio stands at 1.77, a significant increase from the previous quarter's 1.16. This suggests that Emerson Electric has improved its short-term liquidity position. However, it is important to note that a current ratio of 1.77 may indicate that the company has more current assets than it needs to cover its current liabilities, possibly signaling inefficiency in asset management.
Comparing the current ratio to the same period in the prior year, we see a notable decline from 2.75 on September 30, 2023, to 1.77 in 2024. This downward trend could be concerning as it may indicate a potential strain on Emerson Electric's ability to meet its short-term obligations with its current assets.
Further analysis of the components of current assets and liabilities is necessary to fully assess the implications of Emerson Electric's current ratio fluctuations. Overall, while the current ratio of 1.77 as of September 30, 2024, appears healthy on the surface, a deep dive into the company's financial health and operational efficiency is recommended for a more comprehensive understanding.
Peer comparison
Sep 30, 2024