Emerson Electric Company (EMR)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.70 | 4.92 | 5.42 | 6.24 | 6.75 | 5.72 | 5.60 | 6.39 | 6.77 | 6.15 | 6.49 | 6.21 | 6.33 | 5.99 | 6.85 | 6.80 | 6.74 | 6.15 | 6.30 | 6.20 | |
| DSO | days | 77.60 | 74.26 | 67.39 | 58.46 | 54.05 | 63.85 | 65.15 | 57.10 | 53.93 | 59.36 | 56.23 | 58.80 | 57.64 | 60.93 | 53.31 | 53.65 | 54.15 | 59.30 | 57.90 | 58.83 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.70
= 77.60
To analyze Emerson Electric Co.'s days of sales outstanding (DSO) over the past eight quarters, we see a general trend of increasing DSO from Q1 2023 to Q1 2024. DSO has fluctuated within a range of 43.95 to 63.30 days during this period.
In the most recent quarter (Q1 2024), DSO stands at 63.30 days, reflecting an increase compared to the previous quarter (Q4 2023) where DSO was at 60.60 days. This indicates that Emerson Electric Co. is taking longer to collect its accounts receivable, which may suggest potential issues with credit policies, customer payment delays, or changes in sales terms.
Furthermore, compared to the same quarter in the previous year (Q1 2023), there has been a noticeable increase in DSO from 43.95 days to 63.30 days. This substantial rise in DSO over a year could impact the company's liquidity and working capital management, as higher DSO may tie up funds that could have been used elsewhere in the business.
It is crucial for Emerson Electric Co. to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of receivables. They may need to evaluate their credit and collection policies, streamline invoicing processes, and address any potential issues impacting their ability to promptly convert sales into cash.
Peer comparison
Dec 31, 2023
See also:
Emerson Electric Company Average Receivable Collection Period (Quarterly Data)