Emerson Electric Co has a quick ratio of 0.86. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Emerson Electric Co's Quick Ratio or its related term are showing as below:
EMR'
s Quick Ratio Range Over the Past 10 Years
Min: 0.62 Med: 0.97 Max: 2.35
Current: 0.86
During the past 13 years, Emerson Electric Co's highest Quick Ratio was 2.35. The lowest was 0.62. And the median was 0.97.
EMR's Quick Ratio is ranked worse than 77.37% of 3023
companies
in the Industrial Products industry
Industry Median: 1.39
vs EMR: 0.86
Emerson Electric Co Quick Ratio Historical Data
The historical data trend for Emerson Electric Co's Quick 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 Quick Ratio
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Quick Ratio falls into.
Emerson Electric Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Emerson Electric Co's Quick Ratio for the fiscal year that ended in Sep. 2023 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) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Emerson Electric Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Emerson Electric Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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