Emerson Electric Company (EMR)

Return on assets (ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	1,968,000	13,219,000	3,231,000	2,303,000	1,965,000
Total assets	US$ in thousands	44,246,000	42,746,000	35,672,000	24,715,000	22,882,000
ROA		4.45%	30.92%	9.06%	9.32%	8.59%

September 30, 2024 calculation

ROA = Net income ÷ Total assets
= $1,968,000K ÷ $44,246,000K
= 4.45%

Emerson Electric Company's return on assets (ROA) has seen fluctuations over the past five years. In 2024, the ROA stood at 4.45%, representing a notable decrease from the previous year's exceptional 30.92%. This substantial drop indicates a potential decline in the company's profitability relative to its assets utilization efficiency.

Comparing the current ROA to the figures from 2022 (9.06%), 2021 (9.32%), and 2020 (8.59%), it is evident that the company's profitability in 2024 is relatively weaker. This suggests that Emerson Electric may be facing challenges in generating earnings from its assets compared to the prior years.

Overall, the fluctuating trend in ROA implies varying levels of effectiveness in utilizing assets to generate profits for Emerson Electric Company. The declining ROA in 2024 raises questions about the company's operational performance and efficiency in capital allocation that warrant further investigation and analysis.