Emerson Electric Company (EMR)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,882,000 | 2,685,000 | 2,796,000 | 1,931,000 | 2,450,000 |
| Interest expense | US$ in thousands | 34,000 | 193,000 | 147,000 | 156,000 | 174,000 |
| Interest coverage | 55.35 | 13.91 | 19.02 | 12.38 | 14.08 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,882,000K ÷ $34,000K
= 55.35
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a greater ability to cover interest expenses.
Looking at Emerson Electric Co.'s interest coverage ratio over the past five years, we observe a generally stable trend. The ratio has ranged between 17.85 and 20.03, reflecting a consistent ability to cover interest expenses. This stability suggests that the company has maintained a steady earnings capacity relative to its interest obligations.
The absence of the interest coverage ratio for September 30, 2023, may be due to a data reporting delay, making it difficult to assess the most recent financial standing. However, based on the previous years' performance, Emerson Electric Co. has demonstrated strong financial health in terms of its ability to meet interest payments. It's important to monitor subsequent financial reports to gain a complete understanding of the company's current position.
Peer comparison
Sep 30, 2023