Emerson Electric Company (EMR)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 11,538,000 | 13,818,000 | 13,755,000 | 5,289,000 | 5,117,000 | 3,780,000 | 3,475,000 | 3,209,000 | 3,185,000 | 2,649,000 | 2,822,000 | 2,494,000 | 2,446,000 | 2,310,000 | 2,371,000 | 2,680,000 | 2,668,000 | 2,837,000 | 2,751,000 | 2,753,000 |
| Revenue (ttm) | US$ in thousands | 15,827,000 | 15,124,000 | 16,394,000 | 17,488,000 | 18,549,000 | 19,642,000 | 19,229,000 | 18,908,000 | 18,579,000 | 18,267,000 | 17,878,000 | 17,095,000 | 16,795,000 | 16,785,000 | 17,198,000 | 17,968,000 | 18,376,000 | 18,372,000 | 18,289,000 | 18,061,000 |
| Pretax margin | 72.90% | 91.36% | 83.90% | 30.24% | 27.59% | 19.24% | 18.07% | 16.97% | 17.14% | 14.50% | 15.78% | 14.59% | 14.56% | 13.76% | 13.79% | 14.92% | 14.52% | 15.44% | 15.04% | 15.24% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $11,538,000K ÷ $15,827,000K
= 72.90%
To analyze Emerson Electric Co.'s pretax margin over the specified time periods, we calculate the pretax margin as a percentage of pretax income to total revenue.
The pretax margin for Emerson Electric Co. varied over the analyzed quarters, with a high of 20.86% in Q3 2022 and a low of 15.36% in Q1 2024. The company's pretax margin has generally been above 15%, indicating that Emerson Electric Co. has been effectively controlling its pre-tax expenses relative to its revenue.
The trend in pretax margin fluctuated, showing a decrease from Q3 2022 to Q1 2023. However, from Q1 2023 to Q4 2023, there was a slight increase in pretax margin before decreasing again in Q1 2024. Overall, the pretax margin appears to show some variability, which may suggest periodic changes in cost management or revenue generation strategies within Emerson Electric Co.
It is important to note that a lower pretax margin does not necessarily indicate poor performance, as it could be a result of investments in growth opportunities or other strategic initiatives by the company. However, a consistent decline in pretax margin over multiple periods may warrant further investigation into the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023