Emerson Electric Co (LTS:0R33) ROCE % : 8.80% (As of Dec. 2024)

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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. 2024 was 8.80%.

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.

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Emerson Electric Co ROCE % Chart

Emerson Electric Co Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROCE %

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15.88

10.84

11.47

9.65

6.15

Emerson Electric Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															2.71	7.66	5.33	8.84	8.80

Emerson Electric Co ROCE % Calculation

Emerson Electric Co's annualized ROCE % for the fiscal year that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	2343	/	( ( (42746 - 5032)	+	(44246 - 5742) )	/ 2 )
	=	2343	/	( (37714	+	38504)	/ 2 )
	=	2343	/	38109
	=	6.15 %

Emerson Electric Co's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	3308	/	( ( (44246 - 5742)	+	(42610 - 5958) )	/ 2 )
	=	3308	/	( ( 38504	+	36652 )	/ 2 )
	=	3308	/	37578
	=	8.80 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Emerson Electric Co (LTS:0R33) 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

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Emerson Electric Co Business Description

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Address

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

Website

https://www.emerson.com

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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