Emerson Electric Company (EMR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.25 | 0.25 | 0.27 | 0.27 | 0.27 | 0.27 | 0.42 | 0.43 | 0.44 | 0.45 | 0.44 | 0.46 | 0.37 | 0.39 | 0.39 | 0.40 | 0.43 | 0.41 | 0.35 | 0.32 |
| 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 |
| Financial leverage ratio | 2.05 | 2.19 | 2.22 | 2.25 | 2.07 | 2.16 | 3.18 | 3.38 | 3.44 | 3.59 | 2.79 | 2.63 | 2.50 | 2.64 | 2.61 | 2.66 | 2.72 | 2.77 | 2.89 | 2.51 |
The solvency ratios of Emerson Electric Company show a mix of stability and fluctuation over the past few quarters. The debt-to-assets ratio has remained relatively consistent around 0.16 to 0.18, indicating prudent management of debt in relation to total assets.
However, the debt-to-capital and debt-to-equity ratios have shown more variability, with an increasing trend observed in recent quarters. This suggests that the company has been utilizing more debt financing in relation to both total capital and equity, which could potentially increase its financial risk.
Furthermore, the financial leverage ratio has shown fluctuations as well, ranging from 2.05 to 3.59. A higher financial leverage ratio indicates a higher level of debt relative to equity, which can magnify both returns and risks for the company.
Overall, Emerson Electric Company's solvency ratios indicate a need for careful monitoring of its debt levels and the impact on its financial stability and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.27 | -2.38 | -2.23 | 0.59 | 6.10 | 7.79 | 6.44 | 6.83 | 8.95 | 7.88 | 8.09 | 8.08 | 6.97 | 6.22 | 4.80 | 4.63 | 3.07 | 4.59 | 5.49 | 4.46 |
The interest coverage ratio of Emerson Electric Company has shown fluctuation over the past few years. The ratio has ranged from negative values, indicating insufficient earnings to cover interest expenses, to positive values, indicating the ability to cover interest expenses comfortably.
In the most recent period, the interest coverage ratio was -1.27, suggesting that the company's earnings were not sufficient to cover its interest expenses. This may raise concerns about the company's ability to meet its debt obligations using its current income levels.
On the other hand, looking at historical data, the interest coverage ratio has improved significantly in some periods, reaching levels as high as 8.95. This indicates a stronger ability to cover interest expenses with operating income, which can be seen as a positive sign of financial health and stability.
Overall, it is important for Emerson Electric Company to carefully manage its earnings and monitor its interest coverage ratio to ensure it can meet its financial obligations and maintain a healthy financial position.