Emerson Electric Company (EMR)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	7,155,000	7,610,000	8,259,000	5,793,000	6,326,000
Total assets	US$ in thousands	44,246,000	42,746,000	35,672,000	24,715,000	22,882,000
Debt-to-assets ratio		0.16	0.18	0.23	0.23	0.28

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,155,000K ÷ $44,246,000K
= 0.16

The debt-to-assets ratio of Emerson Electric Company has shown a decreasing trend over the past five fiscal years. As of September 30, 2024, the ratio stands at 0.16, indicating that the company's debt represents 16% of its total assets. This suggests that Emerson Electric has a relatively conservative capital structure with a lower reliance on debt funding compared to its total asset base.

The decreasing trend in the debt-to-assets ratio from 0.28 in 2020 to 0.16 in 2024 reflects the company's efforts to reduce its debt levels or grow its asset base. A lower debt-to-assets ratio generally signifies lower financial risk and greater financial stability for the company as it indicates a lower proportion of debt in relation to its total assets.

Overall, the declining trend in Emerson Electric's debt-to-assets ratio demonstrates the company's prudent management of its capital structure and debt levels, which may positively affect its financial flexibility and ability to weather economic downturns.