Emerson Electric Company (EMR)

Number of days of payables

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Payables turnover		11.74	10.06	12.89	7.34	8.41
Number of days of payables	days	31.10	36.28	28.32	49.73	43.43

September 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.74
= 31.10

Emerson Electric Company's number of days of payables has exhibited fluctuations over the past five years. In the most recent fiscal year ending September 30, 2024, the company took an average of 31.10 days to pay its trade payables. This represents an improvement from the previous year, where the number of days of payables was 36.28 days.

In years prior to 2023, the company's payment cycle also varied. For example, in September 2022, Emerson Electric Company managed its payables more efficiently, with an average of 28.32 days taken to settle its obligations. This was a drastic reduction from the extended payment period of 49.73 days in September 2021.

The trend continued in the fiscal year ending September 2020, where Emerson Electric Company's number of days of payables was 43.43 days. Overall, the company's ability to manage its payables effectively has fluctuated, potentially due to changes in its business operations, supplier relationships, or financial strategies. It is essential for stakeholders to monitor this metric closely as it can impact the company's liquidity position and working capital management.