Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Emerson Electric Co., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Emerson Electric Co. gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Emerson Electric Co. operating profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Emerson Electric Co. net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Emerson Electric Co. ROE improved from 2017 to 2018 and from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Emerson Electric Co. ROA improved from 2017 to 2018 and from 2018 to 2019. |
Gross Profit Margin
Emerson Electric Co., gross profit margin calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 7,815) | 7,460) | 6,404) | 6,262) | 9,048) | 10,158) | |
| Net sales | 18,372) | 17,408) | 15,264) | 14,522) | 22,304) | 24,537) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 42.54% | 42.85% | 41.95% | 43.12% | 40.57% | 41.40% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Boeing Co. | 5.83% | — | — | — | — | — | |
| Caterpillar Inc. | 27.83% | — | — | — | — | — | |
| Eaton Corp. plc | 32.97% | — | — | — | — | — | |
| GE Aerospace | 23.52% | — | — | — | — | — | |
| Honeywell International Inc. | 33.70% | — | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | — | |
| RTX Corp. | 25.93% | — | — | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 7,815 ÷ 18,372 = 42.54%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Emerson Electric Co. gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Operating Profit Margin
Emerson Electric Co., operating profit margin calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Earnings from continuing operations before interest and income taxes | 3,033) | 2,826) | 2,500) | 2,504) | 4,332) | 3,542) | |
| Net sales | 18,372) | 17,408) | 15,264) | 14,522) | 22,304) | 24,537) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 16.51% | 16.23% | 16.38% | 17.24% | 19.42% | 14.44% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Boeing Co. | -2.58% | — | — | — | — | — | |
| Caterpillar Inc. | 16.33% | — | — | — | — | — | |
| Eaton Corp. plc | 13.38% | — | — | — | — | — | |
| GE Aerospace | 12.84% | — | — | — | — | — | |
| Honeywell International Inc. | 18.66% | — | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | — | |
| RTX Corp. | 11.64% | — | — | — | — | — | |
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
Operating profit margin = 100 × Earnings from continuing operations before interest and income taxes ÷ Net sales
= 100 × 3,033 ÷ 18,372 = 16.51%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Emerson Electric Co. operating profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Net Profit Margin
Emerson Electric Co., net profit margin calculation, comparison to benchmarks
| 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) | |
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Boeing Co. | -0.83% | — | — | — | — | — | |
| Caterpillar Inc. | 12.00% | — | — | — | — | — | |
| Eaton Corp. plc | 10.34% | — | — | — | — | — | |
| GE Aerospace | -5.69% | — | — | — | — | — | |
| Honeywell International Inc. | 16.73% | — | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | — | |
| RTX Corp. | 7.19% | — | — | — | — | — | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Emerson Electric Co. net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Return on Equity (ROE)
Emerson Electric Co., ROE calculation, comparison to benchmarks
| 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) | |
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 41.77% | — | — | — | — | — | |
| Eaton Corp. plc | 13.75% | — | — | — | — | — | |
| GE Aerospace | -17.58% | — | — | — | — | — | |
| Honeywell International Inc. | 33.22% | — | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | — | |
| RTX Corp. | 13.25% | — | — | — | — | — | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Emerson Electric Co. ROE improved from 2017 to 2018 and from 2018 to 2019. |
Return on Assets (ROA)
Emerson Electric Co., ROA calculation, comparison to benchmarks
| 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) | |
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Boeing Co. | -0.48% | — | — | — | — | — | |
| Caterpillar Inc. | 7.77% | — | — | — | — | — | |
| Eaton Corp. plc | 6.74% | — | — | — | — | — | |
| GE Aerospace | -1.87% | — | — | — | — | — | |
| Honeywell International Inc. | 10.47% | — | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | — | |
| RTX Corp. | 3.96% | — | — | — | — | — | |
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
ROA = 100 × Net earnings common stockholders ÷ Total assets
= 100 × 2,306 ÷ 20,497 = 11.25%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Emerson Electric Co. ROA improved from 2017 to 2018 and from 2018 to 2019. |