Emerson Electric Company (EMR)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 13,219,000 | 3,231,000 | 2,303,000 | 1,965,000 | 2,306,000 |
| Total stockholders’ equity | US$ in thousands | 20,689,000 | 10,364,000 | 9,883,000 | 8,405,000 | 8,233,000 |
| ROE | 63.89% | 31.18% | 23.30% | 23.38% | 28.01% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $13,219,000K ÷ $20,689,000K
= 63.89%
Emerson Electric Co.'s return on equity (ROE) has exhibited significant variability over the past five years. The ROE increased from 28.01% in 2019 to 31.18% in 2022 before experiencing a substantial surge to 63.86% in 2023. This considerable upturn in ROE indicates an improvement in the company's ability to generate profits from shareholders' equity. The notable increase in ROE from 2022 to 2023 suggests enhanced efficiency in utilizing equity to generate earnings. However, it is essential to further assess the factors contributing to this sharp increase in ROE in 2023 to determine the sustainability of this performance. Tracking the company's ROE over time will provide valuable insights into its profitability and efficiency in utilizing equity for growth and value creation.
Peer comparison
Sep 30, 2023