Emerson Electric Co has a Cash Ratio of 0.62. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Emerson Electric Co's Cash Ratio or its related term are showing as below:
EMR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.18 Med: 0.4 Max: 1.6
Current: 0.62
During the past 13 years, Emerson Electric Co's highest Cash Ratio was 1.60. The lowest was 0.18. And the median was 0.40.
EMR's Cash Ratio is ranked better than 55.72% of 2970
companies
in the Industrial Products industry
Industry Median: 0.52
vs EMR: 0.62
Emerson Electric Co Cash Ratio Historical Data
The historical data trend for Emerson Electric Co's Cash Ratio 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.
Competitive Comparison of Emerson Electric Co's Cash Ratio
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Cash Ratio falls into.
Emerson Electric Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Emerson Electric Co's Cash Ratio for the fiscal year that ended in Sep. 2024 is calculated as:
* 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.
Emerson Electric Co (NYSE:EMR) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Emerson Electric Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Emerson Electric Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 1890 as the first manufacturer of electric fans in North America, Emerson Electric has become a leading industrial automation player through the acquisition of established brands. Emerson organizes its business into seven segments that sell a wide range of automation software, power tools, and automation hardware such as valves, gauges, and switches. In recent years, Emerson divested its climate technology and consumer businesses to become more of a pure-play industrial automation company. The automation of a factory is an enticing long-term proposition for manufacturers, helping reduce accident rates and raise uptime and productivity.
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