Emerson Electric Company (EMR)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,588,000 | 2,298,000 | 2,318,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 128,000 | 117,000 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 3,446,000 | 3,276,000 | 3,405,000 | 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 |
| 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 |
| Quick ratio | 1.23 | 0.73 | 0.75 | 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 |
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 varied over the past few quarters, indicating fluctuations in the company's ability to cover its short-term obligations with its most liquid assets. The quick ratio is calculated by taking into account only the most liquid assets, such as cash, marketable securities, and accounts receivable, and dividing them by current liabilities.
In the latest quarter, the quick ratio was 1.23, which suggests that the company had $1.23 in liquid assets available to cover each dollar of current liabilities. This indicates a strong liquidity position and implies that Emerson Electric Company is comfortably able to meet its short-term obligations.
Looking at the trend over the past few quarters, there have been fluctuations in the quick ratio. For example, in the first quarter of 2023, the quick ratio was notably low at 0.66, indicating potential liquidity challenges. However, the ratio improved in subsequent quarters, reaching a high of 2.21 in the third quarter of 2023, which suggests a significant increase in liquidity.
Overall, the quick ratio of Emerson Electric Company has displayed variability but generally indicates a solid ability to cover short-term obligations with liquid assets. It is important for investors and analysts to monitor this ratio along with other financial metrics to assess the company's overall financial health and liquidity position.
Peer comparison
Sep 30, 2024