Emerson Electric Company (EMR)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	21,636,000	20,689,000	10,364,000	9,883,000	8,405,000
Debt-to-equity ratio		0.33	0.37	0.80	0.59	0.75

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,155,000K ÷ $21,636,000K
= 0.33

The debt-to-equity ratio of Emerson Electric Company has shown a declining trend over the past five years, indicating a decrease in the company's reliance on debt to finance its operations and investments. In particular, the ratio has decreased from 0.75 in 2020 to 0.33 in 2024, reaching its lowest level during this period. This suggests that the company has been able to strengthen its equity position relative to its debt obligations, which can enhance financial stability and flexibility.

The significant decrease in the debt-to-equity ratio from 0.80 in 2022 to 0.33 in 2024 reflects a substantial improvement in the company's capital structure. A lower ratio typically indicates lower financial risk and implies that the company is less leveraged, which can be viewed positively by investors and creditors.

Overall, the trend of decreasing debt-to-equity ratio for Emerson Electric Company signals a positive development in its financial health, as it indicates a more conservative approach to capital structure management and potentially lower financial risk.