Cash Flow Statement
The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
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.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
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Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
Over the observed periods, net earnings exhibit notable volatility. Earnings increased from 2014 through 2015, peaking at 2,733 million USD, followed by a significant decline in 2016 and 2017, before recovering in 2018 and 2019, though not surpassing the earlier peak. Discontinued operations had a mixed impact, with losses in 2016 but gains in 2017.
Depreciation and amortization expenses decreased considerably from 2014 to 2016, with a low of 568 million USD in 2016, then gradually rose again through 2019, approaching earlier levels. Stock compensation expense fluctuated, reaching the highest value in 2018 before declining in 2019. Pension expense showed a downward trend, becoming minimal by 2019, while pension funding remained relatively consistent with minor fluctuations.
The tax impact due to legislative changes is notable in 2018, with a one-time negative impact of 189 million USD. Significant gains from divestitures occurred in 2015, both in gross gains and associated taxes, contributing to that year's cash flow dynamics. Goodwill impairment is only present in 2014, reflecting a large non-cash charge that year.
Working capital components show mixed trends. Receivables and inventories have alternating positive and negative changes, suggesting variability in asset management or sales cycles. Accounts payable and accrued expenses show fluctuations that do not convey a consistent trend. Overall, changes in operating working capital swing from positive to negative values over the years, indicating shifting dynamics in day-to-day operational liquidity.
Cash provided by operating activities displays a generally stable and upward trend from 2016 onward, increasing from 2,499 million USD to 3,006 million USD in 2019, implying strengthening operational cash generation. Capital expenditures peaked in 2018 but remained within a mid-range band, reflecting continued investment in asset base but no marked expansion or contraction.
Cash flow from investing activities reflects large variations, driven primarily by acquisitions and divestitures. Purchases of businesses peaked notably in 2017 and 2018, with a significant outflow of nearly 3 billion USD in 2017, then declined sharply in 2019. Divestitures also varied widely, with a substantial inflow in 2015 and smaller inflows in following years. This pattern suggests an active portfolio management approach with strategic acquisitions and disposals.
Financing activities show large outflows each year, although the magnitude has decreased since 2017. Short-term borrowings fluctuate, with no consistent pattern, while long-term debt issuance resumes significantly in 2019 after a gap from 2016–2018. Payments on long-term debt are steady, reducing debt consistently. Dividends paid remained fairly stable, signaling consistent shareholder returns. Stock repurchases fluctuate notably, with a peak in 2015, followed by relatively lower repurchases in subsequent years, although still substantial. Purchase of noncontrolling interests only appears in 2014 with a significant outflow.
Overall cash flows from discontinued operations show modest inflows in 2016 and a large inflow in 2017, indicating successful divestiture or operational termination activity in those periods. Exchange rate effects generally reduce cash and equivalents, albeit by relatively small amounts.
The company's cash position mostly declined until 2018, sharply dropping by nearly two billion USD, but rebounded moderately in 2019. This dip corresponds with heavy investing activities and net declines in financing cash flows; the partial recovery suggests improved liquidity management or operational cash flow improvement.