Emerson Electric Company (EMR)

Debt-to-assets ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	7,155,000	7,111,000	7,614,000	7,632,000	7,610,000	7,642,000	8,174,000	8,159,000	8,259,000	8,367,000	8,203,000	8,722,000	5,793,000	5,835,000	5,823,000	5,892,000	6,326,000	5,500,000	3,960,000	4,018,000
Total assets	US$ in thousands	44,246,000	45,585,000	46,440,000	46,513,000	42,746,000	44,173,000	36,147,000	36,241,000	35,672,000	37,042,000	29,497,000	26,959,000	24,715,000	24,484,000	23,800,000	23,678,000	22,882,000	21,730,000	21,711,000	21,101,000
Debt-to-assets ratio		0.16	0.16	0.16	0.16	0.18	0.17	0.23	0.23	0.23	0.23	0.28	0.32	0.23	0.24	0.24	0.25	0.28	0.25	0.18	0.19

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 remained relatively stable over the past few quarters, standing at 0.16 as of September 30, 2024, and also reported the same ratio in June and March 2024. This indicates that for every dollar of assets, the company has $0.16 of debt.

Looking back at the trend, there was a slight increase in the ratio from 0.18 in September 2023 to 0.23 in December 2023, and this ratio stayed at 0.23 for the next three consecutive quarters. Subsequently, the ratio rose in the first quarter of 2022 to 0.28 and further increased to 0.32 by June 2022 before gradually decreasing.

A lower debt-to-assets ratio suggests that the company relies less on debt financing to fund its operations and investments, which can be viewed positively by investors and creditors as it indicates a lower risk of default. However, it's important to note that the company's debt levels are still significant enough to finance its assets and operations effectively.