Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Emerson Electric Co., adjusted financial ratios

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Activity Ratio
Total Asset Turnover
Reported	0.90	0.85	0.78	0.67	1.01	1.01
Adjusted	0.88	0.83	0.76	0.66	0.98	0.99
Liquidity Ratio
Current Ratio
Reported	1.19	1.07	1.64	1.24	1.29	1.29
Adjusted	1.24	1.11	1.69	1.22	1.29	1.29
Solvency Ratios
Debt to Equity
Reported	0.69	0.53	0.53	0.88	0.85	0.60
Adjusted	0.70	0.55	0.55	0.94	0.90	0.64
Debt to Capital
Reported	0.41	0.35	0.35	0.47	0.46	0.37
Adjusted	0.41	0.36	0.35	0.48	0.47	0.39
Financial Leverage
Reported	2.49	2.28	2.25	2.87	2.73	2.39
Adjusted	2.38	2.17	2.14	2.88	2.66	2.32
Profitability Ratios
Net Profit Margin
Reported	12.55%	12.66%	9.94%	11.26%	12.15%	8.75%
Adjusted	8.74%	11.44%	17.25%	8.40%	7.63%	6.80%
Return on Equity (ROE)
Reported	28.01%	24.62%	17.41%	21.60%	33.54%	21.22%
Adjusted	18.19%	20.55%	28.06%	15.96%	20.01%	15.68%
Return on Assets (ROA)
Reported	11.25%	10.80%	7.75%	7.52%	12.27%	8.88%
Adjusted	7.65%	9.47%	13.12%	5.55%	7.51%	6.76%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Emerson Electric Co. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Emerson Electric Co. adjusted current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Emerson Electric Co. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Emerson Electric Co. adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Emerson Electric Co. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Emerson Electric Co. adjusted net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Emerson Electric Co. adjusted ROE deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Emerson Electric Co. adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

Emerson Electric Co., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Net sales	18,372)	17,408)	15,264)	14,522)	22,304)	24,537)
Total assets	20,497)	20,390)	19,589)	21,743)	22,088)	24,177)
Activity Ratio
Total asset turnover¹	0.90	0.85	0.78	0.67	1.01	1.01
Adjusted
Selected Financial Data (US$ in millions)
Net sales	18,372)	17,408)	15,264)	14,522)	22,304)	24,537)
Adjusted total assets²	20,982)	21,021)	20,075)	21,985)	22,645)	24,685)
Activity Ratio
Adjusted total asset turnover³	0.88	0.83	0.76	0.66	0.98	0.99

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
Total asset turnover = Net sales ÷ Total assets
= 18,372 ÷ 20,497 = 0.90

² Adjusted total assets. See details »

³ 2019 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 18,372 ÷ 20,982 = 0.88

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Emerson Electric Co. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Current assets	7,139)	6,619)	8,252)	9,960)	10,049)	10,867)
Current liabilities	5,976)	6,164)	5,045)	8,008)	7,800)	8,454)
Liquidity Ratio
Current ratio¹	1.19	1.07	1.64	1.24	1.29	1.29
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets²	7,251)	6,732)	8,343)	9,652)	9,824)	10,627)
Adjusted current liabilities³	5,836)	6,040)	4,925)	7,902)	7,633)	8,261)
Liquidity Ratio
Adjusted current ratio⁴	1.24	1.11	1.69	1.22	1.29	1.29

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,139 ÷ 5,976 = 1.19

² Adjusted current assets. See details »

³ Adjusted current liabilities. See details »

⁴ 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 7,251 ÷ 5,836 = 1.24

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Emerson Electric Co. adjusted current ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt	5,721)	4,760)	4,656)	6,646)	6,842)	6,024)
Common stockholders’ equity	8,233)	8,947)	8,718)	7,568)	8,081)	10,119)
Solvency Ratio
Debt to equity¹	0.69	0.53	0.53	0.88	0.85	0.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	6,191)	5,352)	5,137)	7,196)	7,624)	6,834)
Adjusted total equity³	8,824)	9,689)	9,385)	7,644)	8,502)	10,647)
Solvency Ratio
Adjusted debt to equity⁴	0.70	0.55	0.55	0.94	0.90	0.64

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
Debt to equity = Total debt ÷ Common stockholders’ equity
= 5,721 ÷ 8,233 = 0.69

² Adjusted total debt. See details »

³ Adjusted total equity. See details »

⁴ 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 6,191 ÷ 8,824 = 0.70

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Solvency ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Emerson Electric Co. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt	5,721)	4,760)	4,656)	6,646)	6,842)	6,024)
Total capital	13,954)	13,707)	13,374)	14,214)	14,923)	16,143)
Solvency Ratio
Debt to capital¹	0.41	0.35	0.35	0.47	0.46	0.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	6,191)	5,352)	5,137)	7,196)	7,624)	6,834)
Adjusted total capital³	15,015)	15,041)	14,522)	14,840)	16,126)	17,481)
Solvency Ratio
Adjusted debt to capital⁴	0.41	0.36	0.35	0.48	0.47	0.39

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,721 ÷ 13,954 = 0.41

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 6,191 ÷ 15,015 = 0.41

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Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Emerson Electric Co. adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Total assets	20,497)	20,390)	19,589)	21,743)	22,088)	24,177)
Common stockholders’ equity	8,233)	8,947)	8,718)	7,568)	8,081)	10,119)
Solvency Ratio
Financial leverage¹	2.49	2.28	2.25	2.87	2.73	2.39
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets²	20,982)	21,021)	20,075)	21,985)	22,645)	24,685)
Adjusted total equity³	8,824)	9,689)	9,385)	7,644)	8,502)	10,647)
Solvency Ratio
Adjusted financial leverage⁴	2.38	2.17	2.14	2.88	2.66	2.32

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
Financial leverage = Total assets ÷ Common stockholders’ equity
= 20,497 ÷ 8,233 = 2.49

² Adjusted total assets. See details »

³ Adjusted total equity. See details »

⁴ 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 20,982 ÷ 8,824 = 2.38

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Emerson Electric Co. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Net earnings common stockholders	2,306)	2,203)	1,518)	1,635)	2,710)	2,147)
Net sales	18,372)	17,408)	15,264)	14,522)	22,304)	24,537)
Profitability Ratio
Net profit margin¹	12.55%	12.66%	9.94%	11.26%	12.15%	8.75%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings²	1,605)	1,991)	2,633)	1,220)	1,701)	1,669)
Net sales	18,372)	17,408)	15,264)	14,522)	22,304)	24,537)
Profitability Ratio
Adjusted net profit margin³	8.74%	11.44%	17.25%	8.40%	7.63%	6.80%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
Net profit margin = 100 × Net earnings common stockholders ÷ Net sales
= 100 × 2,306 ÷ 18,372 = 12.55%

² Adjusted net earnings. See details »

³ 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 1,605 ÷ 18,372 = 8.74%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Emerson Electric Co. adjusted net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Net earnings common stockholders	2,306)	2,203)	1,518)	1,635)	2,710)	2,147)
Common stockholders’ equity	8,233)	8,947)	8,718)	7,568)	8,081)	10,119)
Profitability Ratio
ROE¹	28.01%	24.62%	17.41%	21.60%	33.54%	21.22%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings²	1,605)	1,991)	2,633)	1,220)	1,701)	1,669)
Adjusted total equity³	8,824)	9,689)	9,385)	7,644)	8,502)	10,647)
Profitability Ratio
Adjusted ROE⁴	18.19%	20.55%	28.06%	15.96%	20.01%	15.68%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
ROE = 100 × Net earnings common stockholders ÷ Common stockholders’ equity
= 100 × 2,306 ÷ 8,233 = 28.01%

² Adjusted net earnings. See details »

³ Adjusted total equity. See details »

⁴ 2019 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total equity
= 100 × 1,605 ÷ 8,824 = 18.19%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Emerson Electric Co. adjusted ROE deteriorated from 2017 to 2018 and from 2018 to 2019.

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Reported
Selected Financial Data (US$ in millions)
Net earnings common stockholders	2,306)	2,203)	1,518)	1,635)	2,710)	2,147)
Total assets	20,497)	20,390)	19,589)	21,743)	22,088)	24,177)
Profitability Ratio
ROA¹	11.25%	10.80%	7.75%	7.52%	12.27%	8.88%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings²	1,605)	1,991)	2,633)	1,220)	1,701)	1,669)
Adjusted total assets³	20,982)	21,021)	20,075)	21,985)	22,645)	24,685)
Profitability Ratio
Adjusted ROA⁴	7.65%	9.47%	13.12%	5.55%	7.51%	6.76%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ 2019 Calculation
ROA = 100 × Net earnings common stockholders ÷ Total assets
= 100 × 2,306 ÷ 20,497 = 11.25%

² Adjusted net earnings. See details »

³ Adjusted total assets. See details »

⁴ 2019 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 1,605 ÷ 20,982 = 7.65%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Emerson Electric Co. adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

Emerson Electric Co. (NYSE:EMR)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

Emerson Electric Co., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)