Stock Analysis on Net

Emerson Electric Co. (NYSE:EMR)

This company has been moved to the archive! The financial data has not been updated since April 24, 2020.

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Emerson Electric Co., solvency ratios

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Debt Ratios
Debt to equity 0.69 0.53 0.53 0.88 0.85 0.60
Debt to capital 0.41 0.35 0.35 0.47 0.46 0.37
Debt to assets 0.28 0.23 0.24 0.31 0.31 0.25
Financial leverage 2.49 2.28 2.25 2.87 2.73 2.39
Coverage Ratios
Interest coverage 15.22 14.20 12.62 11.77 21.81 16.36
Fixed charge coverage 6.88 6.54 5.77 5.75 8.04 6.32

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Emerson Electric Co. debt to equity ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Emerson Electric Co. debt to capital ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Emerson Electric Co. debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Emerson Electric Co. financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Emerson Electric Co. interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Emerson Electric Co. fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Emerson Electric Co., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 1,444 1,623 862 2,584 2,553 2,465
Long-term debt, excluding current maturities 4,277 3,137 3,794 4,062 4,289 3,559
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
Benchmarks
Debt to Equity, Competitors2
Boeing Co.
Caterpillar Inc. 2.58
Eaton Corp. plc 0.52
GE Aerospace 3.21
Honeywell International Inc. 0.87
Lockheed Martin Corp. 4.05
RTX Corp. 1.04
Debt to Equity, Sector
Capital Goods 2.08
Debt to Equity, Industry
Industrials 1.86

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 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Emerson Electric Co. debt to equity ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Capital

Emerson Electric Co., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 1,444 1,623 862 2,584 2,553 2,465
Long-term debt, excluding current maturities 4,277 3,137 3,794 4,062 4,289 3,559
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
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
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.46
Caterpillar Inc. 0.72
Eaton Corp. plc 0.34
GE Aerospace 0.76
Honeywell International Inc. 0.46
Lockheed Martin Corp. 0.80
RTX Corp. 0.51
Debt to Capital, Sector
Capital Goods 0.68
Debt to Capital, Industry
Industrials 0.65

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 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Emerson Electric Co. debt to capital ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Debt to Assets

Emerson Electric Co., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 1,444 1,623 862 2,584 2,553 2,465
Long-term debt, excluding current maturities 4,277 3,137 3,794 4,062 4,289 3,559
Total debt 5,721 4,760 4,656 6,646 6,842 6,024
 
Total assets 20,497 20,390 19,589 21,743 22,088 24,177
Solvency Ratio
Debt to assets1 0.28 0.23 0.24 0.31 0.31 0.25
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.20
Caterpillar Inc. 0.48
Eaton Corp. plc 0.25
GE Aerospace 0.34
Honeywell International Inc. 0.27
Lockheed Martin Corp. 0.27
RTX Corp. 0.31
Debt to Assets, Sector
Capital Goods 0.31
Debt to Assets, Industry
Industrials 0.32

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
Debt to assets = Total debt ÷ Total assets
= 5,721 ÷ 20,497 = 0.28

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Emerson Electric Co. debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Financial Leverage

Emerson Electric Co., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
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
Benchmarks
Financial Leverage, Competitors2
Boeing Co.
Caterpillar Inc. 5.38
Eaton Corp. plc 2.04
GE Aerospace 9.40
Honeywell International Inc. 3.17
Lockheed Martin Corp. 15.20
RTX Corp. 3.34
Financial Leverage, Sector
Capital Goods 6.65
Financial Leverage, Industry
Industrials 5.76

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

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Emerson Electric Co. financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Emerson Electric Co., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Net earnings common stockholders 2,306 2,203 1,518 1,635 2,710 2,147
Add: Net income attributable to noncontrolling interest 22 21 32 29 23 37
Less: Discontinued operations, net of tax (125) 45
Add: Income tax expense 531 443 660 697 1,428 1,164
Add: Interest expense 201 202 201 215 200 218
Earnings before interest and tax (EBIT) 3,060 2,869 2,536 2,531 4,361 3,566
Solvency Ratio
Interest coverage1 15.22 14.20 12.62 11.77 21.81 16.36
Benchmarks
Interest Coverage, Competitors2
Boeing Co. -2.19
Caterpillar Inc. 19.62
Eaton Corp. plc 11.98
GE Aerospace 1.27
Honeywell International Inc. 22.17
Lockheed Martin Corp. 12.09
RTX Corp. 5.65
Interest Coverage, Sector
Capital Goods 4.85
Interest Coverage, Industry
Industrials 4.37

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
Interest coverage = EBIT ÷ Interest expense
= 3,060 ÷ 201 = 15.22

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Emerson Electric Co. interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

Emerson Electric Co., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Net earnings common stockholders 2,306 2,203 1,518 1,635 2,710 2,147
Add: Net income attributable to noncontrolling interest 22 21 32 29 23 37
Less: Discontinued operations, net of tax (125) 45
Add: Income tax expense 531 443 660 697 1,428 1,164
Add: Interest expense 201 202 201 215 200 218
Earnings before interest and tax (EBIT) 3,060 2,869 2,536 2,531 4,361 3,566
Add: Rent expense 285 279 289 273 391 411
Earnings before fixed charges and tax 3,345 3,148 2,825 2,804 4,752 3,977
 
Interest expense 201 202 201 215 200 218
Rent expense 285 279 289 273 391 411
Fixed charges 486 481 490 488 591 629
Solvency Ratio
Fixed charge coverage1 6.88 6.54 5.77 5.75 8.04 6.32
Benchmarks
Fixed Charge Coverage, Competitors2
Boeing Co. -1.19
Caterpillar Inc. 13.01
Eaton Corp. plc 7.45
GE Aerospace 1.09
Honeywell International Inc. 14.06
Lockheed Martin Corp. 9.12
RTX Corp. 4.31
Fixed Charge Coverage, Sector
Capital Goods 3.63
Fixed Charge Coverage, Industry
Industrials 2.96

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,345 ÷ 486 = 6.88

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Emerson Electric Co. fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.