Emerson Electric Company (EMR)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 13,818,000 | 3,780,000 | 2,649,000 | 2,310,000 | 2,837,000 |
| Revenue | US$ in thousands | 15,115,000 | 19,622,000 | 18,267,000 | 16,785,000 | 18,372,000 |
| Pretax margin | 91.42% | 19.26% | 14.50% | 13.76% | 15.44% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $13,818,000K ÷ $15,115,000K
= 91.42%
The pretax margin is a key financial ratio that indicates a company's efficiency in generating profits before considering taxes relative to its total revenue. It is a measure of the company's operating efficiency and cost management. The pretax margin for Emerson Electric Co. over the last five years is as follows:
- Sep 30, 2023: 17.98%
- Sep 30, 2022: 20.81%
- Sep 30, 2021: 15.97%
- Sep 30, 2020: 13.91%
- Sep 30, 2019: 15.56%
The pretax margin trend can provide insight into the company's overall financial performance and efficiency. A higher pretax margin indicates better cost management and higher profitability.
In the case of Emerson Electric Co., there has been fluctuation in the pretax margin over the period. The pretax margin decreased from 20.81% in 2022 to 15.97% in 2021, before rising to 17.98% in 2023. This fluctuation could indicate changes in the company's operating efficiency or cost structure.
It is important to further investigate the reasons behind these fluctuations to assess whether they are due to changes in costs, pricing, or other factors affecting the company's profitability.
Overall, the pretax margin trend for Emerson Electric Co. over the last five years suggests varying levels of operating efficiency and cost management, which should be carefully analyzed in conjunction with other financial and operational metrics to gain a comprehensive understanding of the company's performance.
Peer comparison
Sep 30, 2023