Emerson Electric Company (EMR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	21,636,000	20,689,000	10,364,000	9,883,000	8,405,000
ROE		9.10%	63.89%	31.18%	23.30%	23.38%

September 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,968,000K ÷ $21,636,000K
= 9.10%

Emerson Electric Company's return on equity (ROE) has fluctuated over the past five years. In 2024, the ROE stands at 9.10%, significantly lower than the previous year's ROE of 63.89%. This sharp decrease indicates a weaker performance in generating profits from shareholders' equity compared to the prior year.

Looking further back, the ROE in 2022 was 31.18%, showing a strong performance in that year but still lower than the exceptional ROE of 63.89% in 2023. In 2021 and 2020, the ROE figures were fairly consistent at around 23%, indicating a relatively stable performance in utilizing equity to generate profits.

Overall, the significant fluctuations in ROE over the years suggest varying levels of efficiency in generating returns on the shareholders' equity invested in the company. Further analysis would be needed to understand the specific factors driving these fluctuations and to assess the sustainability of Emerson Electric Company's profitability in the future.