Emerson Electric Company (EMR)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 13,219,000 | 3,231,000 | 2,303,000 | 1,965,000 | 2,306,000 |
| Revenue | US$ in thousands | 15,115,000 | 19,622,000 | 18,267,000 | 16,785,000 | 18,372,000 |
| Net profit margin | 87.46% | 16.47% | 12.61% | 11.71% | 12.55% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $13,219,000K ÷ $15,115,000K
= 87.46%
Emerson Electric Co.'s net profit margin has exhibited significant variability over the past five years. The net profit margin measures the company's profitability by indicating how much of each dollar of revenue is translated into profit after all expenses are accounted for.
In 2023, the net profit margin increased dramatically to 87.13%, representing a substantial improvement from the previous year's 16.46%. This remarkable surge in profitability could be attributed to a variety of factors such as cost-cutting measures, increased revenue, or efficiency improvements.
The year 2022 saw a significant improvement in net profit margin compared to the prior year, with the margin rising to 16.46% from 12.63% in 2021. This improvement indicates that the company effectively managed its expenses relative to its revenue, resulting in a higher proportion of revenue translating into profit.
In 2021, the net profit margin increased modestly to 12.63% from 11.71% in the previous year. While the improvement in the net profit margin is positive, it was relatively subdued compared to other years.
In 2020, the net profit margin stood at 11.71%, displaying a slight increase from the margin of 12.55% in 2019. This minor change suggests that the company maintained its profitability levels without significant fluctuations.
The relatively high net profit margins in recent years indicate that Emerson Electric Co. has been successful in managing its costs and generating profit from its revenue. However, the dramatic increase in 2023 warrants further investigation to understand the underlying reasons for such a significant surge in profitability. Further analysis of the company's financial statements and performance drivers would provide more insights into the factors contributing to these fluctuations in net profit margin.
Peer comparison
Sep 30, 2023