Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Emerson Electric Co. inventory turnover ratio deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Emerson Electric Co. receivables turnover ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Emerson Electric Co. payables turnover ratio increased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Emerson Electric Co. working capital turnover ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
| 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. number of days of inventory outstanding deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
| 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. operating cycle deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
| 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. number of days of payables outstanding decreased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
| 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. cash conversion cycle deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Inventory Turnover
Emerson Electric Co., inventory turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | 2,412) | 2,392) | 2,843) | 2,683) | 2,645) | 2,386) | 2,823) | 2,507) | 2,423) | 2,195) | 2,631) | 2,361) | 2,017) | 1,851) | 2,219) | 2,081) | 2,037) | 1,923) | 3,446) | 3,269) | 3,234) | 3,307) | 3,918) | 3,674) | 3,417) | 3,370) | ||||||||
| Inventories | 2,058) | 2,064) | 1,880) | 2,061) | 2,073) | 1,980) | 1,813) | 1,805) | 1,897) | 1,845) | 1,696) | 1,891) | 1,331) | 1,278) | 1,208) | 1,949) | 1,950) | 1,903) | 1,847) | 2,144) | 2,107) | 2,121) | 2,057) | 2,253) | 2,233) | 2,162) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Inventory turnover1 | 5.02 | 5.12 | 5.62 | 5.11 | 5.00 | 5.12 | 5.49 | 5.40 | 5.07 | 4.99 | 5.22 | 4.47 | 6.14 | 6.41 | 6.84 | 4.87 | 5.47 | 6.24 | 7.18 | 6.40 | 6.71 | 6.75 | 6.99 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 0.78 | 0.88 | 0.94 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 2.82 | 2.97 | 3.25 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 4.16 | 4.70 | 5.05 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 6.20 | 6.00 | 5.11 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 4.41 | 4.50 | 4.97 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 4.88 | 5.23 | 5.51 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 15.46 | 14.94 | 14.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 4.85 | 4.51 | 5.21 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Inventory turnover
= (Cost of salesQ2 2020
+ Cost of salesQ1 2020
+ Cost of salesQ4 2019
+ Cost of salesQ3 2019)
÷ Inventories
= (2,412 + 2,392 + 2,843 + 2,683)
÷ 2,058 = 5.02
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Emerson Electric Co. inventory turnover ratio deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Receivables Turnover
Emerson Electric Co., receivables turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | 4,162) | 4,151) | 4,971) | 4,684) | 4,570) | 4,147) | 4,888) | 4,456) | 4,248) | 3,816) | 4,435) | 4,039) | 3,574) | 3,216) | 3,932) | 3,674) | 3,579) | 3,337) | 5,814) | 5,503) | 5,400) | 5,587) | 6,807) | 6,312) | 5,812) | 5,606) | ||||||||
| Receivables, less allowances | 2,641) | 2,726) | 2,985) | 2,901) | 2,911) | 2,733) | 3,344) | 3,027) | 3,042) | 2,881) | 3,072) | 2,926) | 2,479) | 2,426) | 2,701) | 4,014) | 3,874) | 3,842) | 4,319) | 4,272) | 4,299) | 4,404) | 5,019) | 4,772) | 4,563) | 4,429) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Receivables turnover1 | 6.80 | 6.74 | 6.15 | 6.30 | 6.20 | 6.49 | 5.21 | 5.60 | 5.44 | 5.51 | 4.97 | 5.04 | 5.81 | 5.94 | 5.38 | 4.09 | 4.71 | 5.22 | 5.16 | 5.45 | 5.61 | 5.57 | 4.89 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 23.85 | 21.97 | 23.44 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 6.11 | 6.12 | 5.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 5.87 | 6.44 | 6.42 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 7.25 | 7.07 | 6.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 5.03 | 5.08 | 5.22 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 5.14 | 4.87 | 4.90 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 22.19 | 21.14 | 25.59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 6.79 | 5.35 | 5.70 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Receivables turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Receivables, less allowances
= (4,162 + 4,151 + 4,971 + 4,684)
÷ 2,641 = 6.80
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Emerson Electric Co. receivables turnover ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Payables Turnover
Emerson Electric Co., payables turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | 2,412) | 2,392) | 2,843) | 2,683) | 2,645) | 2,386) | 2,823) | 2,507) | 2,423) | 2,195) | 2,631) | 2,361) | 2,017) | 1,851) | 2,219) | 2,081) | 2,037) | 1,923) | 3,446) | 3,269) | 3,234) | 3,307) | 3,918) | 3,674) | 3,417) | 3,370) | ||||||||
| Accounts payable | 1,521) | 1,649) | 1,874) | 1,785) | 1,730) | 1,794) | 1,943) | 1,647) | 1,603) | 1,596) | 1,776) | 1,613) | 1,368) | 1,335) | 1,517) | 2,230) | 2,140) | 2,075) | 2,358) | 2,402) | 2,407) | 2,468) | 2,951) | 2,645) | 2,522) | 2,425) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Payables turnover1 | 6.79 | 6.41 | 5.63 | 5.90 | 5.99 | 5.65 | 5.12 | 5.92 | 6.00 | 5.77 | 4.99 | 5.24 | 5.97 | 6.13 | 5.44 | 4.25 | 4.99 | 5.72 | 5.62 | 5.72 | 5.87 | 5.80 | 4.87 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 4.77 | 4.69 | 4.63 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 6.31 | 6.05 | 6.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 6.67 | 6.36 | 6.94 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 8.18 | 7.88 | 6.78 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 4.99 | 4.57 | 4.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 4.32 | 4.23 | 4.25 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 37.46 | 16.70 | 40.16 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 6.92 | 4.73 | 5.28 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Payables turnover
= (Cost of salesQ2 2020
+ Cost of salesQ1 2020
+ Cost of salesQ4 2019
+ Cost of salesQ3 2019)
÷ Accounts payable
= (2,412 + 2,392 + 2,843 + 2,683)
÷ 1,521 = 6.79
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Emerson Electric Co. payables turnover ratio increased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Working Capital Turnover
Emerson Electric Co., working capital turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | 8,032) | 7,196) | 7,139) | 7,350) | 7,152) | 6,658) | 6,619) | 8,576) | 7,725) | 8,152) | 8,252) | 8,554) | 9,446) | 8,877) | 9,960) | 10,220) | 9,913) | 9,694) | 10,049) | 10,644) | 10,344) | 10,483) | 10,867) | 10,813) | 10,203) | 9,999) | ||||||||
| Less: Current liabilities | 7,940) | 6,340) | 5,976) | 6,218) | 6,714) | 7,540) | 6,164) | 6,954) | 5,945) | 6,192) | 5,045) | 5,370) | 3,771) | 4,146) | 8,008) | 8,326) | 8,182) | 8,202) | 7,800) | 8,312) | 8,770) | 8,877) | 8,454) | 8,533) | 7,832) | 7,108) | ||||||||
| Working capital | 92) | 856) | 1,163) | 1,132) | 438) | (882) | 455) | 1,622) | 1,780) | 1,960) | 3,207) | 3,184) | 5,675) | 4,731) | 1,952) | 1,894) | 1,731) | 1,492) | 2,249) | 2,332) | 1,574) | 1,606) | 2,413) | 2,280) | 2,371) | 2,891) | ||||||||
| Net sales | 4,162) | 4,151) | 4,971) | 4,684) | 4,570) | 4,147) | 4,888) | 4,456) | 4,248) | 3,816) | 4,435) | 4,039) | 3,574) | 3,216) | 3,932) | 3,674) | 3,579) | 3,337) | 5,814) | 5,503) | 5,400) | 5,587) | 6,807) | 6,312) | 5,812) | 5,606) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Working capital turnover1 | 195.30 | 21.47 | 15.80 | 16.16 | 41.24 | — | 38.26 | 10.45 | 9.29 | 8.09 | 4.76 | 4.64 | 2.54 | 3.04 | 7.44 | 8.66 | 10.53 | 13.44 | 9.92 | 9.99 | 15.32 | 15.27 | 10.17 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 1.76 | 4.27 | 15.57 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 3.45 | 4.33 | 4.04 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 6.93 | 8.04 | 7.54 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 7.05 | 5.60 | 5.95 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 6.05 | 8.72 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 3.14 | 6.93 | 5.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 13.44 | 17.12 | 19.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 9.23 | 9.50 | 26.47 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Working capital turnover
= (Net salesQ2 2020
+ Net salesQ1 2020
+ Net salesQ4 2019
+ Net salesQ3 2019)
÷ Working capital
= (4,162 + 4,151 + 4,971 + 4,684)
÷ 92 = 195.30
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Emerson Electric Co. working capital turnover ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Average Inventory Processing Period
Emerson Electric Co., average inventory processing period calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | 5.02 | 5.12 | 5.62 | 5.11 | 5.00 | 5.12 | 5.49 | 5.40 | 5.07 | 4.99 | 5.22 | 4.47 | 6.14 | 6.41 | 6.84 | 4.87 | 5.47 | 6.24 | 7.18 | 6.40 | 6.71 | 6.75 | 6.99 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average inventory processing period1 | 73 | 71 | 65 | 71 | 73 | 71 | 67 | 68 | 72 | 73 | 70 | 82 | 59 | 57 | 53 | 75 | 67 | 59 | 51 | 57 | 54 | 54 | 52 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 468 | 416 | 388 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 129 | 123 | 112 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 88 | 78 | 72 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 59 | 61 | 71 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 83 | 81 | 74 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 75 | 70 | 66 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 24 | 24 | 26 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 75 | 81 | 70 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.02 = 73
2 Click competitor name to see calculations.
| 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. number of days of inventory outstanding deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Average Receivable Collection Period
Emerson Electric Co., average receivable collection period calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | 6.80 | 6.74 | 6.15 | 6.30 | 6.20 | 6.49 | 5.21 | 5.60 | 5.44 | 5.51 | 4.97 | 5.04 | 5.81 | 5.94 | 5.38 | 4.09 | 4.71 | 5.22 | 5.16 | 5.45 | 5.61 | 5.57 | 4.89 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average receivable collection period1 | 54 | 54 | 59 | 58 | 59 | 56 | 70 | 65 | 67 | 66 | 73 | 72 | 63 | 61 | 68 | 89 | 78 | 70 | 71 | 67 | 65 | 66 | 75 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 15 | 17 | 16 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 60 | 60 | 62 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 62 | 57 | 57 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 50 | 52 | 59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 73 | 72 | 70 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 71 | 75 | 75 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 16 | 17 | 14 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 54 | 68 | 64 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.80 = 54
2 Click competitor name to see calculations.
| 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. |
Operating Cycle
Emerson Electric Co., operating cycle calculation (quarterly data)
No. days
| Mar 31, 2020 | Dec 31, 2019 | 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 | 73 | 71 | 65 | 71 | 73 | 71 | 67 | 68 | 72 | 73 | 70 | 82 | 59 | 57 | 53 | 75 | 67 | 59 | 51 | 57 | 54 | 54 | 52 | — | — | — | ||||||||
| Average receivable collection period | 54 | 54 | 59 | 58 | 59 | 56 | 70 | 65 | 67 | 66 | 73 | 72 | 63 | 61 | 68 | 89 | 78 | 70 | 71 | 67 | 65 | 66 | 75 | — | — | — | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Operating cycle1 | 127 | 125 | 124 | 129 | 132 | 127 | 137 | 133 | 139 | 139 | 143 | 154 | 122 | 118 | 121 | 164 | 145 | 129 | 122 | 124 | 119 | 120 | 127 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 483 | 433 | 404 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 189 | 183 | 174 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 150 | 135 | 129 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 109 | 113 | 130 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 156 | 153 | 144 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 146 | 145 | 141 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 40 | 41 | 40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 129 | 149 | 134 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 73 + 54 = 127
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Emerson Electric Co. operating cycle deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Average Payables Payment Period
Emerson Electric Co., average payables payment period calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | 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 | 6.79 | 6.41 | 5.63 | 5.90 | 5.99 | 5.65 | 5.12 | 5.92 | 6.00 | 5.77 | 4.99 | 5.24 | 5.97 | 6.13 | 5.44 | 4.25 | 4.99 | 5.72 | 5.62 | 5.72 | 5.87 | 5.80 | 4.87 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average payables payment period1 | 54 | 57 | 65 | 62 | 61 | 65 | 71 | 62 | 61 | 63 | 73 | 70 | 61 | 60 | 67 | 86 | 73 | 64 | 65 | 64 | 62 | 63 | 75 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 77 | 78 | 79 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 58 | 60 | 59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 55 | 57 | 53 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 45 | 46 | 54 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 73 | 80 | 83 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 85 | 86 | 86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 10 | 22 | 9 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 53 | 77 | 69 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.79 = 54
2 Click competitor name to see calculations.
| 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. number of days of payables outstanding decreased from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |
Cash Conversion Cycle
Emerson Electric Co., cash conversion cycle calculation (quarterly data)
No. days
| Mar 31, 2020 | Dec 31, 2019 | 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 | 73 | 71 | 65 | 71 | 73 | 71 | 67 | 68 | 72 | 73 | 70 | 82 | 59 | 57 | 53 | 75 | 67 | 59 | 51 | 57 | 54 | 54 | 52 | — | — | — | ||||||||
| Average receivable collection period | 54 | 54 | 59 | 58 | 59 | 56 | 70 | 65 | 67 | 66 | 73 | 72 | 63 | 61 | 68 | 89 | 78 | 70 | 71 | 67 | 65 | 66 | 75 | — | — | — | ||||||||
| Average payables payment period | 54 | 57 | 65 | 62 | 61 | 65 | 71 | 62 | 61 | 63 | 73 | 70 | 61 | 60 | 67 | 86 | 73 | 64 | 65 | 64 | 62 | 63 | 75 | — | — | — | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 73 | 68 | 59 | 67 | 71 | 62 | 66 | 71 | 78 | 76 | 70 | 84 | 61 | 58 | 54 | 78 | 72 | 65 | 57 | 60 | 57 | 57 | 52 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 406 | 355 | 325 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 131 | 123 | 115 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cummins Inc. | 95 | 78 | 76 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 64 | 67 | 76 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| General Electric Co. | 83 | 73 | 61 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 61 | 59 | 55 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 30 | 19 | 31 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 76 | 72 | 65 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-K (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31).
1 Q2 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 73 + 54 – 54 = 73
2 Click competitor name to see calculations.
| 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. cash conversion cycle deteriorated from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020. |