Emerson Electric Company (EMR)
Debt-to-equity ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 4,277,000 | 4,336,000 | 3,786,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 8,233,000 | 8,755,000 | 8,526,000 |
| Debt-to-equity ratio | 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 | 0.52 | 0.50 | 0.44 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,632,000K ÷ $20,674,000K
= 0.37
The debt-to-equity ratio of Emerson Electric Co. has fluctuated over the past eight quarters. Generally, a lower debt-to-equity ratio indicates a lower reliance on debt financing and a stronger financial position.
In Q1 2024, the debt-to-equity ratio was 0.53, showing a moderate level of debt relative to equity. This was an increase from the previous quarter, Q4 2023, where the ratio was 0.39, indicating a decrease in debt levels relative to equity.
Throughout Q2 and Q3 2023, the debt-to-equity ratio rose significantly to 0.89 and 0.93, respectively, suggesting a higher proportion of debt in the capital structure. However, there was a notable decrease in Q4 2022 when the ratio was at its peak of 1.00, indicating a substantial reliance on debt compared to equity.
Further back, in Q3 and Q2 2022, the debt-to-equity ratio continued to increase to 1.12 and 1.04, respectively, signaling a concerning level of debt relative to equity.
Overall, the trend in the debt-to-equity ratio of Emerson Electric Co. indicates fluctuations in the company's capital structure and its use of debt financing over the past eight quarters.
Peer comparison
Dec 31, 2023