Emerson Electric Company (EMR)
Profitability ratios
Return on sales
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 51.08% | 50.56% | 49.98% | 48.80% | 49.11% | 44.19% | 39.09% | 35.10% | 32.10% | 33.66% | 36.33% | 39.05% | 41.40% | 41.67% | 41.44% | 41.52% | 41.76% | 42.19% | 42.51% | 42.52% |
| Operating profit margin | -1.82% | -4.00% | -3.23% | 0.75% | 7.46% | 8.75% | 8.25% | 8.22% | 8.93% | 7.46% | 7.36% | 7.05% | 6.14% | 5.64% | 4.69% | 4.60% | 2.96% | 4.32% | 4.89% | 4.20% |
| Pretax margin | 13.57% | 12.86% | 68.60% | 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% |
| Net profit margin | 11.31% | 10.18% | 65.41% | 69.69% | 87.40% | 80.61% | 27.36% | 25.15% | 16.45% | 16.44% | 15.16% | 14.82% | 12.61% | 13.18% | 12.45% | 12.41% | 11.71% | 11.39% | 12.04% | 11.79% |
Emerson Electric Company's profitability ratios have shown fluctuations over the periods mentioned.
The gross profit margin has generally been above 40%, indicating healthy profitability after accounting for the cost of goods sold. It has ranged from a low of 32.10% to a high of 51.08%. The trend seems to have improved over the most recent periods.
The operating profit margin has been more volatile, with negative values in some quarters. This indicates that the company's operating expenses have at times exceeded the gross profit, resulting in operating losses. There is a positive trend in recent quarters, but the company should focus on controlling costs to maintain profitability.
The pretax margin, which measures profitability before taxes, has also shown variability. The highest value was 91.36%, while the lowest was 13.57%. The significant fluctuations suggest changes in operating efficiency and financial management.
The net profit margin, which reflects profitability after all expenses, has followed a similar pattern as the pretax margin. It ranged from 11.31% to 87.40%, indicating that Emerson has been able to translate a significant portion of its revenues into profits. However, the recent downward trend in net profit margin warrants attention to ensure sustained profitability.
In conclusion, while Emerson Electric Company has demonstrated the ability to generate profits, the fluctuations in profitability ratios highlight the importance of consistent operational efficiency and cost management to ensure long-term financial stability.
Return on investment
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.71% | -1.48% | -1.14% | 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% |
| Return on assets (ROA) | 4.45% | 3.76% | 23.12% | 23.71% | 30.92% | 29.92% | 13.23% | 12.87% | 9.06% | 8.53% | 9.72% | 10.22% | 9.32% | 9.62% | 8.94% | 8.80% | 8.59% | 9.02% | 9.97% | 10.27% |
| Return on total capital | -1.10% | -2.42% | -1.86% | 0.42% | 3.99% | 5.10% | 7.38% | 8.07% | 9.42% | 7.68% | 7.41% | 6.90% | 7.16% | 6.66% | 5.36% | 5.23% | 3.37% | 5.57% | 7.65% | 6.20% |
| Return on equity (ROE) | 9.10% | 8.25% | 51.38% | 53.35% | 63.89% | 64.58% | 42.11% | 43.50% | 31.18% | 30.64% | 27.11% | 26.87% | 23.30% | 25.36% | 23.31% | 23.43% | 23.38% | 25.02% | 28.79% | 25.73% |
Emerson Electric Company's profitability ratios exhibit variability over the historical period analyzed.
Operating return on assets (Operating ROA) declined from a peak of 4.92% in Sep 2022 to a low of -1.48% in Jun 2024, indicating a decrease in profitability generated from the company's operational efficiency.
Return on assets (ROA) also fluctuated, reaching a high of 30.92% in Sep 2023 and a low of 2.17% in Mar 2021, with a general upward trend in recent periods. This metric reflects the company's ability to generate profit from its assets.
Return on total capital experienced similar fluctuations, with a peak of 9.42% in Sep 2022 and a trough of -2.42% in Jun 2024. This ratio assesses the company's efficiency in generating profit from both equity and debt capital invested.
Return on equity (ROE) varied considerably, peaking at 64.58% in Jun 2023 and declining to 8.25% in Jun 2024. This ratio reflects the return earned on shareholders' equity and indicates the company's profitability from the perspective of its equity investors.
Overall, while Emerson Electric Company has shown both strengths and weaknesses in profitability performance, it is essential to assess the underlying factors contributing to these fluctuations to determine the sustainability and strategy of the company's profitability in the future.
See also:
Emerson Electric Company Profitability Ratios (Quarterly Data)