EMERSON ELECTRIC CO

Capital Structure and Liquidity Emerson Electric Co. has a total equity of $20.28 billion and total assets of $41.94 billion as of Q1 2026. The company's debt-to-equity ratio is 0.4, indicating a relatively conservative capital structure. However, the current ratio of 0.84 suggests that current liabilities exceed current assets, which could signal potential liquidity challenges in the short term. The company's liquidity is assessed as high, but the risk assessment flags net cash as negative after subtracting total debt. ### Profitability and Returns Emerson Electric Co. reported a net income of $605 million for Q1 2026, translating to a return on equity (ROE) of 2.98% and a return on assets (ROA) of 1.44%. These figures are below the industry median for ROE and ROA in the Electrical Components & Equipment sector, indicating that the company's profitability is lagging relative to its peers. ### Segments and Geographic Exposure The company operates through two primary business groups: Intelligent Devices and Software and Control. The Intelligent Devices group includes segments such as Final Control, Measurement & Analytical, Discrete Automation, and Safety & Productivity. The Software and Control group includes Control Systems & Software, Test & Measurement, and AspenTech. Emerson's geographic exposure is broad, with a direct sales force and a network of independent sales representatives and distributors. The company's revenue is distributed across the Americas, Asia, the Middle East, Africa, and Europe. ### Growth Trajectory Emerson Electric Co. has a revenue of $4.35 billion in Q1 2026. While the company's growth trajectory is not explicitly detailed in the provided data, the company's capital expenditures of $97 million suggest a moderate investment in future growth. The company's outlook for the current fiscal year and the next fiscal year is not provided, but the company's operating cash flow of $699 million and free cash flow of $602 million indicate strong cash generation capabilities. ### Risk Factors The company faces several risk factors, including competitive pressures that could affect prices or demand for its products. The risk assessment indicates a medium level of dilution risk, with source documents mentioning dilution or offering risk. The company's liquidity risk is assessed as high, and the risk assessment flags potential liquidity challenges due to current liabilities exceeding current assets. ### Recent Events Recent events include the backfilling of short-term debt data in the company's filings. The company also has a policy of demanding full collateralization of derivatives in net asset positions if any counterparty credit ratings fall below certain thresholds. Additionally, the company has integrated advanced analytics and automation technologies to help customers drive efficiency and respond to evolving demands.