Emerson Electric Company (EMR)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,588,000 | 8,051,000 | 1,804,000 | 2,354,000 | 3,315,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 3,446,000 | 3,077,000 | 3,436,000 | 2,971,000 | 2,802,000 |
| Total current liabilities | US$ in thousands | 5,742,000 | 5,032,000 | 7,777,000 | 6,246,000 | 5,785,000 |
| Quick ratio | 1.23 | 2.21 | 0.67 | 0.85 | 1.06 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,588,000K
+ $—K
+ $3,446,000K)
÷ $5,742,000K
= 1.23
The quick ratio of Emerson Electric Company has shown fluctuating trends over the past five years. In 2024, the quick ratio stands at 1.23, indicating that the company has $1.23 in liquid assets available to cover each dollar of current liabilities. This suggests a decrease in liquidity compared to the previous year, where the quick ratio was 2.21.
In 2022, the quick ratio dropped significantly to 0.67, reflecting potential liquidity concerns as the company had only $0.67 in liquid assets to cover each dollar of current liabilities. However, there was a slight improvement in 2023 and 2021, with quick ratios of 0.85 and 1.06, respectively.
Despite the fluctuating trend, it is important to note that a quick ratio above 1 indicates that Emerson Electric Company has an adequate level of liquid assets to cover its short-term obligations. However, investors and creditors may monitor the company's liquidity position closely due to the variability in its quick ratio over the years.
Peer comparison
Sep 30, 2024