Emerson Electric Company (EMR)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cost of revenue	US$ in thousands	12,829,000	16,448,000	15,472,000	14,415,000	15,468,000
Payables	US$ in thousands	1,275,000	1,276,000	2,108,000	1,715,000	1,874,000
Payables turnover		10.06	12.89	7.34	8.41	8.25

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $12,829,000K ÷ $1,275,000K
= 10.06

The payables turnover ratio for Emerson Electric Co. has shown fluctuations over the past five years. The ratio increased from 5.63 in 2019 to 5.70 in 2020, indicating that the company may have taken longer to pay its suppliers in 2020 compared to 2019. This increase was followed by a decrease to 5.06 in 2021, signaling an improvement in the speed at which the company paid its accounts payable.

The ratio then increased to 5.64 in 2022 and further to 6.07 in 2023, suggesting an increase in the efficiency of paying suppliers' invoices. This could indicate that Emerson Electric Co. has been able to manage its payables more effectively in the most recent years, potentially negotiating more favorable payment terms with suppliers or streamlining its accounts payable processes.

Overall, the upward trend in the payables turnover ratio from 2020 to 2023 suggests that Emerson Electric Co. has improved its ability to manage its payables and may be effectively utilizing its working capital. However, it is important to note that further analysis of the company's financial statements and industry benchmarks would provide additional insights into its payables management efficiency.