Emerson Electric key statistics and ratios

In fiscal 2025, Emerson Electric had return on equity of 10.9%, a net margin of 12.7%, debt equal to 64.7% of equity and a current ratio of 0.88. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Emerson Electric: financial ratios, annual
Fiscal year	2009Sept 2009	2010Sept 2010	2011Sept 2011	2012Sept 2012	2013Sept 2013	2014Sept 2014	2015Sept 2015	2016Sept 2016	2017Sept 2017	2018Sept 2018	2019Sept 2019	2020Sept 2020	2021Sept 2021	2022Sept 2022	2023Sept 2023	2024Sept 2024	2025Sept 2025	LTMJun 2026
Gross margin	37.6%	39.6%	39.5%	40.0%	40.3%	57.3%	43.1%	43.1%	42.0%	42.7%	42.5%	41.8%	58.5%	45.7%	49.0%	50.8%	52.8%	53.2%
Net margin	8.6%	10.3%	10.2%	8.1%	8.1%	12.1%	16.7%	11.3%	9.9%	12.7%	12.6%	11.7%	17.8%	23.4%	87.2%	11.3%	12.7%	13.8%
Free-cash-flow margin	12.7%	13.2%	10.7%	9.8%	12.0%	17.1%	11.9%	16.8%	9.4%	13.1%	13.1%	15.2%	24.5%	19.0%	1.8%	16.7%	14.8%	18.6%
Return on equity	20.2%	23.6%	24.6%	19.0%	19.2%	20.7%	29.8%	20.9%	18.6%	24.9%	26.8%	23.6%	25.2%	31.9%	85.1%	9.3%	10.9%	12.7%
Return on assets	8.7%	10.2%	10.6%	8.3%	8.3%	8.8%	11.7%	7.5%	7.3%	11.0%	11.3%	9.1%	9.7%	10.7%	33.7%	4.5%	5.3%	6.1%
Asset turnover	1.02	0.99	1.04	1.02	1.02	0.73	0.70	0.66	0.74	0.87	0.90	0.77	0.54	0.46	0.39	0.40	0.42	0.44
Current ratio	1.54	1.43	1.45	1.42	1.44	1.29	1.29	1.24	1.64	1.07	1.19	1.52	1.35	1.09	2.75	1.77	0.88	0.90
Debt to equity	53.5%	51.7%	50.0%	51.4%	53.3%	59.5%	84.7%	87.7%	53.4%	53.2%	69.5%	89.1%	67.4%	100.1%	39.4%	35.5%	64.7%	64.3%
Effective tax rate	24.6%	29.5%	31.0%	35.0%	35.4%	29.9%	33.3%	30.1%	28.3%	16.6%	18.6%	14.8%	19.6%	22.6%	22.1%	20.5%	23.7%	21.4%
R&D as % of revenue	2.3%	2.2%	2.3%	2.2%	2.3%	2.0%	2.1%	2.2%	2.2%	2.5%	2.5%	2.6%	2.7%	2.8%	3.4%	4.5%	4.3%	—
SG&A as % of revenue	22.0%	22.9%	22.0%	22.3%	22.9%	23.5%	23.0%	23.9%	23.6%	24.5%	24.3%	23.7%	27.0%	26.2%	27.6%	29.4%	28.3%	28.1%
Capital spending as % of revenue	2.6%	2.5%	2.7%	2.7%	2.7%	3.7%	3.6%	3.1%	3.1%	3.5%	3.2%	3.2%	3.1%	2.2%	2.4%	2.4%	2.4%	2.4%
Free cash flow ÷ net income	148.2%	127.9%	104.3%	121.3%	148.3%	141.6%	71.6%	148.9%	94.6%	103.3%	104.6%	129.5%	137.7%	81.2%	2.1%	148.0%	116.3%	134.2%
Dividends ÷ net income	57.9%	46.6%	41.9%	59.5%	58.9%	56.4%	46.8%	75.0%	81.6%	55.8%	52.4%	61.5%	52.5%	37.9%	9.1%	61.0%	52.0%	47.8%
Dividends and buybacks ÷ free cash flow	67.2%	40.1%	76.3%	82.4%	77.1%	74.3%	194.2%	75.1%	114.1%	98.0%	101.9%	84.5%	53.9%	65.7%	>999%	56.2%	88.5%	62.1%

US$ thousands unless shown otherwise. Fiscal quarters.

Emerson Electric: financial ratios, quarterly
Quarter	2024 Q4Sept 2024	2025 Q1Dec 2024	2025 Q2Mar 2025	2025 Q3Jun 2025	2025 Q4Sept 2025	2026 Q1Dec 2025	2026 Q2Mar 2026	2026 Q3Jun 2026
Gross margin	51.3%	53.5%	53.5%	52.6%	51.9%	53.2%	53.1%	54.5%
Net margin	21.6%	14.0%	10.9%	12.9%	13.1%	13.9%	13.5%	14.7%
Free-cash-flow margin	19.8%	16.6%	3.5%	21.5%	17.3%	13.9%	15.2%	27.1%
Current ratio	1.77	1.54	0.80	0.85	0.88	0.84	0.87	0.90
Debt to equity	35.5%	37.2%	74.6%	71.6%	64.7%	66.1%	65.8%	64.3%
SG&A as % of revenue	28.5%	29.3%	28.9%	27.8%	27.4%	28.6%	28.8%	27.6%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 5 checks passed · June 30, 2026

What it owns · $42.2bn

Short-term assets $9.7bnLonger-term assets $32.6bn

What it owes, and who funded it · $31.2bn

Short-term liabilities $10.8bnShareholders' equity $20.4bn

Short-term assets cover short-term liabilities $9.7bn of assets due within a year against $10.8bn of liabilities due within a year.
Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
More cash than debt $2.2bn of cash against $13.1bn of debt.
Debt below 40% of shareholders' equity Debt is 64% of equity.
Debt burden no higher than five years ago Debt to equity moved from 85% to 64% over five years.
A year's operating cash flow covers at least 20% of debt $3.9bn of operating cash flow against $13.1bn of debt.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Emerson Electric's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

78 /100

Strong moat

How hard Emerson Electric's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 16 / 20

Cash operating profit has been a median 12.7% of total assets over 10 years.
Pricing power 13 / 20

Gross margin has been a median 43.2%, moving by 4.4 percentage points (standard deviation) across 10 years.
Durability 13 / 20

Net margin has been a median 12.8%; its worst year was 9.8%.
Cash conversion 17 / 20

Free cash flow was positive in 10 of 10 years, at a median 14.7% of revenue.
Discipline 19 / 20

The diluted share count fell 6.4% over five years; stock-based pay has been a median 0.9% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Emerson Electric's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Emerson Electric.