Current Ratio

Emerson Electric’s current ratio of 0.87x means the company has only $0.87 in current assets (cash, receivables, inventory) for every $1 of short-term liabilities due within a year, signalling a potential liquidity crunch.

This sits well below the sector median of 1.20x, placing EMR in the 24th percentile among peers—meaning three-quarters of similar companies have a higher, more comfortable buffer. There is no available trend because the year-over-year change and quarter-over-quarter change are both listed as N/A, so no direction can be inferred from the latest single data point. The combination of a low absolute level with no trend data makes it impossible to judge whether the liquidity position is improving or worsening, which adds uncertainty rather than a clear risk or opportunity. This metric contradicts the overall NEUTRAL verdict because a current ratio below 1.0x typically flags a need for caution, yet without trend context the signal is insufficient to shift the rating away from neutral.

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