Emerson Electric Company (EMR)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 118,000 | 1,129,000 | 1,434,000 | 1,442,000 | 1,524,000 | 1,755,000 | 1,434,000 | 1,392,000 | 1,309,000 | 1,122,000 | 1,008,000 | 802,000 | 773,000 | 497,000 | 743,000 | 878,000 | 771,000 | 1,039,000 | 976,000 | 1,080,000 |
| Total assets | US$ in thousands | 46,513,000 | 42,746,000 | 44,173,000 | 36,147,000 | 36,241,000 | 35,672,000 | 37,042,000 | 29,497,000 | 26,959,000 | 24,715,000 | 24,484,000 | 23,800,000 | 23,678,000 | 22,882,000 | 21,730,000 | 21,711,000 | 21,101,000 | 20,497,000 | 21,317,000 | 21,071,000 |
| Operating ROA | 0.25% | 2.64% | 3.25% | 3.99% | 4.21% | 4.92% | 3.87% | 4.72% | 4.86% | 4.54% | 4.12% | 3.37% | 3.26% | 2.17% | 3.42% | 4.04% | 3.65% | 5.07% | 4.58% | 5.13% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $118,000K ÷ $46,513,000K
= 0.25%
The operating return on assets (operating ROA) of Emerson Electric Co. has shown a declining trend over the past eight quarters. The ratio decreased from 11.16% in Q2 2022 to 5.37% in Q1 2024. This indicates that the company's ability to generate operating income from its assets has weakened over time.
A lower operating ROA suggests that Emerson Electric Co. is less efficient in utilizing its assets to generate profits through its core operations. This may be attributed to factors such as decreased operational efficiency, higher operating expenses, or lower revenue generation from the company's assets.
It is important for investors and stakeholders to closely monitor Emerson Electric Co.’s operating ROA trend to assess its operational performance and profitability. Management may need to implement strategies to improve asset utilization and efficiency to enhance profitability levels in the upcoming quarters.
Peer comparison
Dec 31, 2023