Emerson Electric Company (EMR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.02% | 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% | 42.54% | 42.35% | 42.56% |
| Operating profit margin | 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% | 5.66% | 5.34% | 5.98% |
| 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% |
| Net profit margin | 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% | 12.55% | 12.06% | 12.81% |
Emerson Electric Co.'s profitability ratios show consistent performance over the quarters analyzed. The gross profit margin has been improving steadily from Q2 2022 to Q1 2024, indicating efficient management of production costs and pricing strategies.
The operating profit margin also reflects a positive trend, with slight fluctuations but maintaining levels above 15% throughout the periods. This indicates effective control over operating expenses and strong operational efficiency.
The pretax margin shows some volatility with fluctuations across quarters, although it generally remains within a reasonable range. This ratio reflects the company's ability to generate profits before accounting for taxes.
The net profit margin demonstrates significant variability, with substantial increases in Q4 2023 and Q1 2024 compared to previous quarters. However, it is important to note that the net profit margin in Q1 2024 is exceptionally high at 69.29%, which may be due to unusual or non-recurring factors.
Overall, Emerson Electric Co. has generally shown strong profitability performance, particularly in terms of gross and operating profit margins, signaling efficient operations and cost management. However, the significant fluctuations in the net profit margin warrant further investigation to assess the sustainability of the company's profit generation.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 11.25% | 10.35% | 10.98% |
| Return on total capital | 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% | 8.31% | 7.46% | 8.77% |
| Return on equity (ROE) | 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% | 28.01% | 25.20% | 27.14% |
Emerson Electric Co. has exhibited a varying trend in profitability ratios over the last eight quarters.
The Operating Return on Assets (Operating ROA) has shown a downward trend from 11.16% in Q2 2022 to 5.37% in Q1 2024, indicating a decrease in the company's operating efficiency in generating profits from its assets.
Return on Assets (ROA) saw a significant fluctuation throughout the period, with the highest being 30.91% in Q4 2023 and the lowest at 8.53% in Q3 2022. This indicates that the company's overall ability to generate earnings from its total assets experienced volatility over the quarters.
Return on Total Capital followed a similar trend, hitting a peak of 17.28% in Q1 2023 and declining to 7.93% in Q1 2024, suggesting a decrease in the company's efficiency in generating returns from its total capital employed.
Return on Equity (ROE) also displayed fluctuations, with the highest value of 64.58% in Q3 2023 and the lowest at 27.11% in Q2 2022. This indicates the company's ability to generate profits from shareholders' equity underwent variations throughout the quarters.
Overall, Emerson Electric Co.'s profitability ratios show volatility and fluctuation over the examined period, indicating changing levels of efficiency in employing assets and capital to generate profits for the equity holders.
See also:
Emerson Electric Company Profitability Ratios (Quarterly Data)