Emerson Electric Co (BSP:E1MR34) ROCE % : 2.32% (As of Dec. 2023)

View and export this data going back to 2020. Start your Free Trial

What is Emerson Electric Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Emerson Electric Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 2.32%.

Emerson Electric Co ROCE % Historical Data

The historical data trend for Emerson Electric Co's ROCE % 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 ROCE % Chart

Emerson Electric Co Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

Get a 7-Day Free Trial

21.32

17.82

10.72

11.44

8.87

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
ROCE %	Get a 7-Day Free Trial															7.00	9.99	9.72	10.27	2.32

Emerson Electric Co ROCE % Calculation

Emerson Electric Co's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	14751.897	/	( ( (187049.699 - 40779.477)	+	(211109.67 - 24851.538) )	/ 2 )
	=	14751.897	/	( (146270.222	+	186258.132)	/ 2 )
	=	14751.897	/	166264.177
	=	8.87 %

Emerson Electric Co's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	4370.62	/	( ( (211109.67 - 24851.538)	+	(227904.397 - 38046.947) )	/ 2 )
	=	4370.62	/	( ( 186258.132	+	189857.45 )	/ 2 )
	=	4370.62	/	188057.791
	=	2.32 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Emerson Electric Co (BSP:E1MR34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Emerson Electric Co ROCE % Related Terms

Thank you for viewing the detailed overview of Emerson Electric Co's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Emerson Electric Co (BSP:E1MR34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Emerson Electric Co (BSP:E1MR34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

EMR:USA EMR:Mexico 1EMR:Italy EMR:Germany

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.

Emerson Electric Co (BSP:E1MR34) Headlines

No Headlines