Emerson Electric Company (EMR)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 21,636,000 | 20,799,000 | 20,900,000 | 20,674,000 | 20,689,000 | 20,464,000 | 11,360,000 | 10,727,000 | 10,364,000 | 10,315,000 | 10,575,000 | 10,249,000 | 9,883,000 | 9,291,000 | 9,130,000 | 8,895,000 | 8,405,000 | 7,831,000 | 7,517,000 | 8,421,000 |
| Debt-to-equity ratio | 0.33 | 0.34 | 0.36 | 0.37 | 0.37 | 0.37 | 0.72 | 0.76 | 0.80 | 0.81 | 0.78 | 0.85 | 0.59 | 0.63 | 0.64 | 0.66 | 0.75 | 0.70 | 0.53 | 0.48 |
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 fluctuations over the past few quarters. The ratio was relatively stable around 0.3 to 0.4 from December 2019 to June 2020 before increasing to 0.75 in September 2020. Subsequently, there was a decline in the ratio to 0.53 in March 2021, followed by a gradual increase reaching 0.85 in June 2022.
The most significant change occurred in March 2023 when the ratio spiked to 0.72, a level not seen since December 2019. This sudden increase indicates a higher proportion of debt relative to equity in the company's capital structure. The ratio further climbed to 0.81 in June 2023, reflecting continued reliance on debt financing.
There was a notable improvement in the debt-to-equity ratio in the recent quarters, with a decrease to 0.36 in March 2024 and further down to 0.33 in September 2024. This reduction suggests a positive trend towards less leverage and a stronger equity position in the company's capital structure.
Overall, the debt-to-equity ratio of Emerson Electric Company has displayed volatility but has shown signs of moderation and improvement in recent periods, indicating a more balanced approach to financing and potentially reduced financial risk.
Peer comparison
Sep 30, 2024