Emerson Electric Co. (EMR)

Statement of Cash Flows

Difficulty: Beginner

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s statement of financial position.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Emerson Electric Co., Consolidated Statement of Cash Flows

US$ in millions

	12 months ended	Sep 30, 2018		Sep 30, 2017		Sep 30, 2016		Sep 30, 2015		Sep 30, 2014		Sep 30, 2013
	Net earnings
	(Earnings) loss from discontinued operations, net of tax
	Depreciation and amortization
	Receivables
	Inventories
	Other current assets
	Accounts payable
	Accrued expenses
	Income taxes
	Changes in operating working capital
	Pension funding
	Gains on divestitures of businesses, after tax
	Income taxes paid on divestiture gains
	Goodwill impairment, after tax
	Pension expense
	Stock compensation expense
	Transition impact of Tax Act
	Deferred income taxes and other
	Other operating cash flow
	Adjustments to reconcile net earnings to net cash provided by operating activities
	Cash provided by operating activities
	Capital expenditures
	Purchases of businesses, net of cash and equivalents acquired
	Divestitures of businesses
	Other, net
	Cash (used in) provided by investing activities
	Net increase (decrease) in short-term borrowings
	Proceeds from short-term borrowings greater than three months
	Payments of short-term borrowings greater than three months
	Proceeds from long-term debt
	Payments on long-term debt
	Dividends paid
	Purchases of common stock
	Purchase of noncontrolling interests
	Other, net
	Cash used in financing activities
	Cash from discontinued operating activities
	Cash from discontinued investing activities
	Cash from discontinued operations
	Effect of exchange rate changes on cash and equivalents
	Increase (decrease) in cash and equivalents
	Beginning cash and equivalents
	Ending cash and equivalents

Based on: 10-K (filing date: 2018-11-19), 10-K (filing date: 2017-11-20), 10-K (filing date: 2016-11-16), 10-K (filing date: 2015-11-18), 10-K (filing date: 2014-11-19), 10-K (filing date: 2013-11-19).

Item	Description	The company
Cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Emerson Electric Co.’s cash provided by operating activities increased from 2016 to 2017 and from 2017 to 2018.
Cash (used in) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Emerson Electric Co.’s cash (used in) provided by investing activities declined from 2016 to 2017 but then slightly increased from 2017 to 2018.
Cash used in financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Emerson Electric Co.’s cash used in financing activities declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

	Emerson Electric Co.	Other companies (not purchased previously)
Financial Statements
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Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
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	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality