Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Emerson Electric Co. (NYSE:EMR)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)

Emerson Electric Co., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Turnover Ratios
Inventory turnover 5.62 5.49 5.22 6.84 7.18 6.99
Receivables turnover 6.15 5.21 4.97 5.38 5.16 4.89
Payables turnover 5.63 5.12 4.99 5.44 5.62 4.87
Working capital turnover 15.80 38.26 4.76 7.44 9.92 10.17
Average No. Days
Average inventory processing period 65 67 70 53 51 52
Add: Average receivable collection period 59 70 73 68 71 75
Operating cycle 124 137 143 121 122 127
Less: Average payables payment period 65 71 73 67 65 75
Cash conversion cycle 59 66 70 54 57 52

Based on: 10-K (filing date: 2019-11-18), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Emerson Electric Co.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Emerson Electric Co.’s receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Emerson Electric Co.’s payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Emerson Electric Co.’s working capital turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Emerson Electric Co.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Emerson Electric Co.’s number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Emerson Electric Co.’s operating cycle improved from 2017 to 2018 and from 2018 to 2019.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Emerson Electric Co.’s number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Emerson Electric Co.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

Emerson Electric Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Cost of sales 10,557  9,948  8,860  8,260  13,256  14,379 
Inventories 1,880  1,813  1,696  1,208  1,847  2,057 
Short-term Activity Ratio
Inventory turnover1 5.62 5.49 5.22 6.84 7.18 6.99
Benchmarks
Inventory Turnover, Industry
Industrials 3.63 4.07 4.28 4.34 4.12 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 10,557 ÷ 1,880 = 5.62

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Emerson Electric Co.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Receivables Turnover

Emerson Electric Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Net sales 18,372  17,408  15,264  14,522  22,304  24,537 
Receivables, less allowances 2,985  3,344  3,072  2,701  4,319  5,019 
Short-term Activity Ratio
Receivables turnover1 6.15 5.21 4.97 5.38 5.16 4.89
Benchmarks
Receivables Turnover, Industry
Industrials 7.86 8.00 6.37 6.58 6.61 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Receivables turnover = Net sales ÷ Receivables, less allowances
= 18,372 ÷ 2,985 = 6.15

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Emerson Electric Co.’s receivables turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Payables Turnover

Emerson Electric Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Cost of sales 10,557  9,948  8,860  8,260  13,256  14,379 
Accounts payable 1,874  1,943  1,776  1,517  2,358  2,951 
Short-term Activity Ratio
Payables turnover1 5.63 5.12 4.99 5.44 5.62 4.87
Benchmarks
Payables Turnover, Industry
Industrials 6.33 6.53 6.56 7.18 7.60 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 10,557 ÷ 1,874 = 5.63

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Emerson Electric Co.’s payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

Emerson Electric Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Current assets 7,139  6,619  8,252  9,960  10,049  10,867 
Less: Current liabilities 5,976  6,164  5,045  8,008  7,800  8,454 
Working capital 1,163  455  3,207  1,952  2,249  2,413 
 
Net sales 18,372  17,408  15,264  14,522  22,304  24,537 
Short-term Activity Ratio
Working capital turnover1 15.80 38.26 4.76 7.44 9.92 10.17
Benchmarks
Working Capital Turnover, Industry
Industrials 7.42 7.64 5.17 5.11 5.62 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Working capital turnover = Net sales ÷ Working capital
= 18,372 ÷ 1,163 = 15.80

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Emerson Electric Co.’s working capital turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Average Inventory Processing Period

Emerson Electric Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Inventory turnover 5.62 5.49 5.22 6.84 7.18 6.99
Short-term Activity Ratio (no. days)
Average inventory processing period1 65 67 70 53 51 52
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Industrials 101 90 85 84 89 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.62 = 65

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Emerson Electric Co.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019.

Average Receivable Collection Period

Emerson Electric Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Receivables turnover 6.15 5.21 4.97 5.38 5.16 4.89
Short-term Activity Ratio (no. days)
Average receivable collection period1 59 70 73 68 71 75
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Industrials 46 46 57 55 55 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.15 = 59

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Emerson Electric Co.’s number of days of receivables outstanding improved from 2017 to 2018 and from 2018 to 2019.

Operating Cycle

Emerson Electric Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Average inventory processing period 65 67 70 53 51 52
Average receivable collection period 59 70 73 68 71 75
Short-term Activity Ratio
Operating cycle1 124 137 143 121 122 127
Benchmarks
Operating Cycle, Industry
Industrials 147 136 142 139 144 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 65 + 59 = 124

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Emerson Electric Co.’s operating cycle improved from 2017 to 2018 and from 2018 to 2019.

Average Payables Payment Period

Emerson Electric Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Payables turnover 5.63 5.12 4.99 5.44 5.62 4.87
Short-term Activity Ratio (no. days)
Average payables payment period1 65 71 73 67 65 75
Benchmarks (no. days)
Average Payables Payment Period, Industry
Industrials 58 56 56 51 48 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.63 = 65

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Emerson Electric Co.’s number of days of payables outstanding decreased from 2017 to 2018 and from 2018 to 2019.

Cash Conversion Cycle

Emerson Electric Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Average inventory processing period 65 67 70 53 51 52
Average receivable collection period 59 70 73 68 71 75
Average payables payment period 65 71 73 67 65 75
Short-term Activity Ratio
Cash conversion cycle1 59 66 70 54 57 52
Benchmarks
Cash Conversion Cycle, Industry
Industrials 89 80 86 88 96 —

Based on: 10-K (filing date: 2019-11-18), 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).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 65 + 59 – 65 = 59

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Emerson Electric Co.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.