Emerson Electric Co (Emerson Electric Co) Gross Margin % : 46.54% (As of Dec. 2023)

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What is Emerson Electric Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Emerson Electric Co's Gross Profit for the three months ended in Dec. 2023 was $1,916 Mil. Emerson Electric Co's Revenue for the three months ended in Dec. 2023 was $4,117 Mil. Therefore, Emerson Electric Co's Gross Margin % for the quarter that ended in Dec. 2023 was 46.54%.

The historical rank and industry rank for Emerson Electric Co's Gross Margin % or its related term are showing as below:

EMR' s Gross Margin % Range Over the Past 10 Years
Min: 41.76 Med: 43.13 Max: 48.97
Current: 48.55

During the past 13 years, the highest Gross Margin % of Emerson Electric Co was 48.97%. The lowest was 41.76%. And the median was 43.13%.

EMR's Gross Margin % is ranked better than
90.16% of 2937 companies
in the Industrial Products industry
Industry Median: 26.45 vs EMR: 48.55

Emerson Electric Co had a gross margin of 46.54% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Emerson Electric Co was 2.80% per year.

Emerson Electric Co Gross Margin % Historical Data

The historical data trend for Emerson Electric Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Emerson Electric Co Gross Margin % Chart

Emerson Electric Co Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Gross Margin %

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42.54

41.76

44.31

45.68

48.97

Emerson Electric Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															48.03	47.95	50.53	49.19	46.54

Competitive Comparison of Emerson Electric Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Emerson Electric Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Emerson Electric Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Emerson Electric Co's Gross Margin % falls into.

Emerson Electric Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Emerson Electric Co's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	7427	/	15165
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15165 - 7738)	/	15165
	=	48.97 %

Emerson Electric Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1916	/	4117
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4117 - 2201)	/	4117
	=	46.54 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Emerson Electric Co (NYSE:EMR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Emerson Electric Co had a gross margin of 46.54% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Emerson Electric Co Gross Margin % Related Terms

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Emerson Electric Co (Emerson Electric Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Emerson Electric Co (NYSE:EMR) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

EMR:Mexico 1EMR:Italy EMR:Germany EMR:Germany EMR:Germany E1MR34:Brazil

Address

8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136

Website

https://www.emerson.com

Emerson Electric sells automation equipment and services under two segments: intelligent devices and software control. Within software and control, it also holds a majority interest in AspenTech, an industrial software business, and owns a test and measurement business that was formerly National Instruments. Intelligent devices also holds Emerson's tools business, which boasts several household brands, like Ridgid. Emerson's automation business is most known for its process manufacturing solutions, which consists of measurement and analytical instrumentation, as well as control valves and actuators, among other products and services. Nearly half of the firm's geographic sales come from the Americas.

Executives

Ram R. Krishnan	officer: Executive Vice Pres & COO	C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Surendralal Lanca Karsanbhai	officer: Exec Pres Auto Sols	C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Mckelvey James Morgan Jr.	director	2645 SOUTH BAYSHORE #802, MIAMI FL 33133
Joshua B. Bolten	director	ROCK CREEK GLOBAL ADVISORS, 1401 I STREET NW, SUITE 1120, WASHINGTON DC 20005
Arthur F Golden	director	450 LEXINGTON AVE, NEW YORK NY 10017
Easter William H Iii	director	370 17TH ST, STE 2500, DENVER CO 80202
Vidya Ramnath	officer: Senior VP & CMO	C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Nicholas J. Piazza	officer: Senior VP & CPO	C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Lisa Flavin	officer: Sr. VP & CCO	8300 MARYLAND AVENUE, ST. LOUIS MO 63105
Leticia Goncalves Lourenco	director	C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Peter Zornio	officer: Chief Technology Officer	C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Sara Yang Bosco	officer: Sr. VP, Secy & Gen. Counsel	8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Frank J Dellaquila	officer: Sr. V. P. and Controller	C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Mark J Bulanda	officer: VP-Acquisitions & Development	8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Elizabeth Adefioye	officer: Chief People Officer	5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154