Emerson Electric Co.: Company Profile and SWOT Analysis by ICDResearch

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									Emerson Electric Co.

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Emerson Electric Co.                                                                Financial Snapshot

                                                                                    Operating Performance
Fast Facts
                                        8000 West Florissant Avenue, Saint Louis,   The company reported revenue of US$21,039.00
Headquarters Address
                                        63136,United States of America              million during the fiscal year 2010 (2010). The
                                                                                    company's revenue grew at a CAGR of 1.61% during
Telephone                               + 1 314 5532000
                                                                                    2006–2010, with an annual growth of 4.66% over
                                                                                    2009. In 2010, the company recorded an operating
Fax                                     + 1 314 5533527                             margin of 13.68%, as against 12.19% in 2009.

Website                                 http://www.emerson.com
                                                                                    Revenue and Margins
Ticker Symbol, Stock Exchange           EMR, New York Stock Exchange

Number of Employees                     127,700

Fiscal Year End                         September

Revenue (in US$ million)                21,039.00




SWOT Analysis

Strengths                               Weaknesses                                  Return on Equity

Diversified Product/Service Portfolio   Increase in SG&A Expenses                   The company recorded a return on equity (ROE) of
                                                                                    22.10% for 2010, as compared to its peers, ABB Ltd
                                                                                    (Ticker: ABBN), Ametek, Inc. (Ticker: AME) and
Strong Order Backlogs                                                               Hitachi, Ltd. (Ticker: 6501), which recorded ROEs of
                                                                                    17.21%, 15.99% and -8.33% respectively. The
Strong Research and Development                                                     company reported a net profit margin of 13.68% in
                                                                                    2010.
Opportunities                           Threats
                                                                                    Return on Equity
Growing UPS Market                      Foreign Currency Fluctuations

Strategic Acquisitions                  Hike in Labor Costs




                                                                                    Liquidity Position

                                                                                    The company reported a current ratio of 1.43 in 2010,
                                                                                    as compared to its peers, ABB Ltd, Ametek, Inc. and
                                                                                    Hitachi, Ltd., which recorded current ratios of 1.51,
                                                                                    1.77 and 1.21 respectively. As of September 2010,
                                                                                    the company recorded cash and short-term
                                                                                    investments of worth US$1,592.00 million, against
                                                                                    US$480.00 million current debt. The company
                                                                                    reported a debt to equity ratio of 0.52 in 2010 as
                                                                                    compared to its peers, ABB Ltd, Ametek, Inc. and
                                                                                    Hitachi, Ltd., which recorded debt to equity ratios of
                                                                                    0.15, 0.66 and 1.86 respectively.




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Emerson Electric Co. - SWOT Profile                                                                                         Page 1
Emerson Electric Co.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................. 10
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ........................................10
    2.2       Key Financial Performance Indicators .................................................................................................................13
      2.2.1       Revenue and Operating Profit .........................................................................................................................13
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................14
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................15
      2.2.4       Operational Efficiency ......................................................................................................................................16
      2.2.5       Solvency ..........................................................................................................................................................17
      2.2.6       Valuation ..........................................................................................................................................................18
    2.3       Competitive Benchmarking ..................................................................................................................................19
      2.3.1       Efficiency ..........................................................................................................................................................19
      2.3.2       Capital Expenditure ..........................................................................................................................................20
      2.3.3       Valuation ..........................................................................................................................................................21
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................22
      2.3.5       Liquidity .....................................................................................................
								
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