Emerson Electric Company (EMR)
Operating profit margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,041,000 | 1,882,000 | 2,685,000 | 2,279,000 | 1,931,000 |
| Revenue | US$ in thousands | 17,435,000 | 15,115,000 | 19,622,000 | 18,267,000 | 16,785,000 |
| Operating profit margin | 5.97% | 12.45% | 13.68% | 12.48% | 11.50% |
September 30, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,041,000K ÷ $17,435,000K
= 5.97%
Emerson Electric Company's operating profit margin has shown a declining trend over the past five years. From 11.50% in 2020, the margin increased to 12.48% in 2021 but then decreased to 13.68% in 2022. However, the trend reversed in the subsequent years as the margin dropped to 12.45% in 2023 and further declined to 5.97% in 2024. This suggests that the company may be facing challenges in controlling its operating expenses relative to its sales revenue. Further analysis is recommended to identify the specific factors contributing to this downward trend in operating profit margin and to develop strategies for improvement.
Peer comparison
Sep 30, 2024