Emerson Electric Company (EMR)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.72 | 6.40 | 6.53 | 7.19 | 7.77 | 9.42 | 6.96 | 6.63 | 6.70 | 7.55 | 7.10 | 7.20 | 7.11 | 7.48 | 7.00 | 7.40 | 7.56 | 8.23 | 7.49 | 7.33 | |
| DOH | days | 63.83 | 57.07 | 55.91 | 50.78 | 46.97 | 38.74 | 52.46 | 55.07 | 54.49 | 48.36 | 51.38 | 50.68 | 51.36 | 48.82 | 52.11 | 49.31 | 48.27 | 44.36 | 48.70 | 49.81 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.72
= 63.83
Emerson Electric Co.'s days of inventory on hand (DOH) is a crucial measure of how efficiently the company manages its inventory levels. A lower DOH indicates that the company is selling its inventory faster and efficiently compared to a higher DOH.
Analyzing the trend in Emerson Electric Co.'s DOH over the past eight quarters shows a fluctuating pattern. The company experienced a consistent decrease in DOH from Q2 2022 to Q1 2023, indicating improved inventory turnover efficiency during that period. However, this trend reversed as DOH increased in Q2 2023 and continued to rise until Q1 2024.
The increasing trend in DOH from Q2 2023 to Q1 2024 might suggest potential issues such as slower inventory turnover, overstocking, or declining sales. It is important for Emerson Electric Co. to address the reasons behind the increasing DOH to avoid tie-up of capital in excess inventory and potential obsolescence issues.
Further analysis, including comparing Emerson Electric Co.'s DOH with industry benchmarks and its competitors, can provide a more comprehensive understanding of the company's inventory management efficiency and its implications on profitability and cash flow.
Peer comparison
Dec 31, 2023
See also:
Emerson Electric Company Average Inventory Processing Period (Quarterly Data)