EMR Stock | | | USD 129.15 1.28 0.98% |
Emerson Electric financial indicator trend analysis is much more than just examining Emerson Electric latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Emerson Electric is a good investment. Please check the relationship between Emerson Electric Total Current Liabilities and its Gross Profit Margin accounts. Check out
Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Emerson Electric. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in population.
To learn how to invest in Emerson Stock, please use our
How to Invest in Emerson Electric guide.
Total Current Liabilities vs Gross Profit Margin
Total Current Liabilities vs Gross Profit Margin Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of
Emerson Electric Total Current Liabilities account and
Gross Profit Margin. At this time, the significance of the direction appears to have almost no relationship.
The correlation between Emerson Electric's Total Current Liabilities and Gross Profit Margin is 0.11. Overlapping area represents the amount of variation of Total Current Liabilities that can explain the historical movement of Gross Profit Margin in the same time period over historical financial statements of Emerson Electric, assuming nothing else is changed. The correlation between historical values of Emerson Electric's Total Current Liabilities and Gross Profit Margin is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Total Current Liabilities of Emerson Electric are associated (or correlated) with its Gross Profit Margin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit Margin has no effect on the direction of Total Current Liabilities i.e., Emerson Electric's Total Current Liabilities and Gross Profit Margin go up and down completely randomly.
Correlation Coefficient | 0.11 |
Relationship Direction | Positive |
Relationship Strength | Insignificant |
Total Current Liabilities
Total Current Liabilities is an item on Emerson Electric balance sheet that include short term debt, accounts payable, accrued salaries payable, payroll taxes payable, accrued liabilities and other debts. Total Current Liabilities of Emerson Electric are important to investors because some useful performance ratios such as Current Ratio and Quick Ratio require Total Current Liabilities to be accurate. The total amount of liabilities that a company is expected to pay within one year, including debts, accounts payable, and other short-term financial obligations.
Gross Profit Margin
Most indicators from Emerson Electric's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Emerson Electric current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out
Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Emerson Electric. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in population.
To learn how to invest in Emerson Stock, please use our
How to Invest in Emerson Electric guide.At this time, Emerson Electric's
Discontinued Operations is relatively stable compared to the past year. As of 12/11/2024,
Tax Provision is likely to grow to about 511.8
M, while
Selling General Administrative is likely to drop slightly above 4.3
B.
| 2021 | 2022 | 2023 | 2024 (projected) |
Gross Profit | 8.2B | 7.4B | 7.8B | 6.5B | Total Revenue | 19.6B | 15.2B | 17.5B | 16.6B |
Emerson Electric fundamental ratios Correlations
Click cells to compare fundamentals
Emerson Electric Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Emerson Electric fundamental ratios Accounts
Pair Trading with Emerson Electric
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Emerson Electric position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Emerson Electric will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Emerson Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Emerson Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Emerson Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Emerson Electric to buy it.
The correlation of Emerson Electric is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Emerson Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Emerson Electric moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Emerson Electric can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation MatchingAdditional Tools for Emerson Stock Analysis
When running Emerson Electric's price analysis, check to
measure Emerson Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Emerson Electric is operating at the current time. Most of Emerson Electric's value examination focuses on studying past and present price action to
predict the probability of Emerson Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Emerson Electric's price. Additionally, you may evaluate how the addition of Emerson Electric to your portfolios can decrease your overall portfolio volatility.