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)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

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

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Emerson Electric Co.’s receivables turnover ratio improved from Q2 2019 to Q3 2019 but then deteriorated significantly from Q3 2019 to Q4 2019.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Emerson Electric Co.’s payables turnover ratio decreased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Emerson Electric Co.’s working capital turnover ratio deteriorated from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Emerson Electric Co.’s operating cycle improved from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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 increased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Emerson Electric Co., inventory turnover calculation (quarterly data)

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data (US$ in millions)
	Cost of sales
	Inventories
	Short-term Activity Ratio
	Inventory turnover¹

¹ Q4 2019 Calculation
Inventory turnover = (Cost of sales_{Q4 2019} + Cost of sales_{Q3 2019} + Cost of sales_{Q2 2019} + Cost of sales_{Q1 2019}) ÷ Inventories
= ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Emerson Electric Co., receivables turnover calculation (quarterly data)

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data (US$ in millions)
	Net sales
	Receivables, less allowances
	Short-term Activity Ratio
	Receivables turnover¹

¹ Q4 2019 Calculation
Receivables turnover = (Net sales_{Q4 2019} + Net sales_{Q3 2019} + Net sales_{Q2 2019} + Net sales_{Q1 2019}) ÷ Receivables, less allowances
= ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

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 Q2 2019 to Q3 2019 but then deteriorated significantly from Q3 2019 to Q4 2019.

Emerson Electric Co., payables turnover calculation (quarterly data)

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data (US$ in millions)
	Cost of sales
	Accounts payable
	Short-term Activity Ratio
	Payables turnover¹

¹ Q4 2019 Calculation
Payables turnover = (Cost of sales_{Q4 2019} + Cost of sales_{Q3 2019} + Cost of sales_{Q2 2019} + Cost of sales_{Q1 2019}) ÷ Accounts payable
= ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

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 decreased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Emerson Electric Co., working capital turnover calculation (quarterly data)

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data (US$ in millions)
	Current assets
	Less: Current liabilities
	Working capital

	Net sales
	Short-term Activity Ratio
	Working capital turnover¹

¹ Q4 2019 Calculation
Working capital turnover = (Net sales_{Q4 2019} + Net sales_{Q3 2019} + Net sales_{Q2 2019} + Net sales_{Q1 2019}) ÷ Working capital
= ( hidden + hidden + hidden + hidden ) ÷ hidden = hidden

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 deteriorated from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Emerson Electric Co., average inventory processing period calculation (quarterly data)

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data
	Inventory turnover
	Short-term Activity Ratio (no. days)
	Average inventory processing period¹

¹ Q4 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ hidden = hidden

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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Emerson Electric Co., average receivable collection period calculation (quarterly data)

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data
	Receivables turnover
	Short-term Activity Ratio (no. days)
	Average receivable collection period¹

¹ Q4 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ hidden = hidden

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., operating cycle calculation (quarterly data)

No. days

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Short-term Activity Ratio
	Operating cycle¹

¹ Q4 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= hidden + hidden = hidden

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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Emerson Electric Co., average payables payment period calculation (quarterly data)

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data
	Payables turnover
	Short-term Activity Ratio (no. days)
	Average payables payment period¹

¹ Q4 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ hidden = hidden

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 increased from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Emerson Electric Co., cash conversion cycle calculation (quarterly data)

No. days

		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Short-term Activity Ratio
	Cash conversion cycle¹

¹ Q4 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= hidden + hidden – hidden = hidden

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 Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

	Emerson Electric Co.	Other companies (not purchased previously)
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Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
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Long-term Trends
Analysis of Components of Financial Statements
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Financial Statements
Common-Size Financial Statements
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Relative Valuation
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Long-term Trends
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Emerson Electric Co. (EMR)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle