Emerson Electric Company (EMR)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 3,365,000 | 3,077,000 | 3,027,000 | 2,801,000 | 2,747,000 | 3,436,000 | 3,432,000 | 2,958,000 | 2,745,000 | 2,971,000 | 2,754,000 | 2,754,000 | 2,652,000 | 2,802,000 | 2,512,000 | 2,641,000 | 2,726,000 | 2,985,000 | 2,901,000 | 2,911,000 |
| 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 |
| Quick ratio | 0.70 | 2.21 | 1.98 | 0.66 | 0.61 | 0.67 | 0.68 | 1.22 | 1.40 | 0.85 | 0.84 | 0.81 | 0.76 | 1.06 | 0.83 | 0.66 | 0.69 | 0.75 | 0.72 | 0.64 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,076,000K
+ $—K
+ $3,365,000K)
÷ $7,765,000K
= 0.70
The quick ratio, also known as the acid-test ratio, measures a company's short-term liquidity by assessing its ability to cover immediate liabilities with its most liquid assets. A quick ratio of above 1 indicates that a company has enough liquid assets to cover its current liabilities.
In the case of Emerson Electric Co., the quick ratio fluctuated over the past eight quarters. In Q1 2024, the quick ratio was 0.80, indicating that the company had $0.80 in liquid assets for every $1 of current liabilities. This was a decrease from the previous quarter's quick ratio of 2.35, suggesting a significant decline in liquidity.
Looking at the trend, the quick ratio was relatively stable between Q3 2022 and Q1 2023, ranging from 0.71 to 0.81. However, in Q2 2023, there was a notable decrease to 0.74, followed by a sharp increase to 2.07 in Q3 2023, indicating a temporary improvement in liquidity. The quick ratio then decreased to 0.80 in Q4 2023 before dropping further to 0.80 in Q1 2024.
Overall, the quick ratio of Emerson Electric Co. has shown some volatility in recent quarters, with fluctuations indicating changes in the company's ability to meet short-term obligations with its liquid assets. Further analysis and comparison with industry benchmarks would be necessary to assess the company's short-term liquidity position accurately.
Peer comparison
Dec 31, 2023