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EMR (Emerson Electric Co) Interest Coverage : 14.21 (As of Jun. 2024)


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What is Emerson Electric Co Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Emerson Electric Co's Operating Income for the three months ended in Jun. 2024 was $796 Mil. Emerson Electric Co's Interest Expense for the three months ended in Jun. 2024 was $-56 Mil. Emerson Electric Co's interest coverage for the quarter that ended in Jun. 2024 was 14.21. The higher the ratio, the stronger the company's financial strength is.

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

EMR' s Interest Coverage Range Over the Past 10 Years
Min: 6.97   Med: 13.99   Max: 16.37
Current: 6.97


EMR's Interest Coverage is ranked worse than
65.08% of 2274 companies
in the Industrial Products industry
Industry Median: 13.985 vs EMR: 6.97

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Emerson Electric Co Interest Coverage Historical Data

The historical data trend for Emerson Electric Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Emerson Electric Co Interest Coverage Chart

Emerson Electric Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.52 15.91 11.87 10.33 10.57

Emerson Electric Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 83.20 5.15 4.35 7.94 14.21

Competitive Comparison of Emerson Electric Co's Interest Coverage

For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Emerson Electric Co's Interest Coverage falls into.



Emerson Electric Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Sep. 2023, Emerson Electric Co's Interest Expense was $-261 Mil. Its Operating Income was $2,759 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,014 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2023 )/Interest Expense (A: Sep. 2023 )
=-1*2759/-261
=10.57

Emerson Electric Co's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Emerson Electric Co's Interest Expense was $-56 Mil. Its Operating Income was $796 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,622 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*796/-56
=14.21

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Emerson Electric Co  (NYSE:EMR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Emerson Electric Co Interest Coverage Related Terms

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


Emerson Electric Co Business Description

Address
8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136
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
Matthew S Levatich director HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Surendralal Lanca Karsanbhai officer: Exec Pres Auto Sols C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136
Mark A Blinn director 5215 N. O'CONNOR BLVD., SUITE 2300, IRVING TX 75039
Ram R. Krishnan officer: Executive Vice Pres & COO 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
Frank J Dellaquila officer: Sr. V. P. and Controller C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Sara Yang Bosco officer: Sr. VP, Secy & Gen. Counsel 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136