Emerson Electric Company (EMR)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,908,000 | 12,829,000 | 13,612,000 | 14,620,000 | 15,534,000 | 16,412,000 | 16,135,000 | 15,899,000 | 15,641,000 | 15,472,000 | 15,017,000 | 14,519,000 | 14,305,000 | 14,415,000 | 14,722,000 | 15,233,000 | 15,607,000 | 15,468,000 | 15,446,000 | 15,192,000 |
| Payables | US$ in thousands | 1,234,000 | 1,275,000 | 1,218,000 | 1,207,000 | 1,219,000 | 1,276,000 | 2,040,000 | 2,049,000 | 2,100,000 | 2,108,000 | 1,966,000 | 1,797,000 | 1,694,000 | 1,715,000 | 1,426,000 | 1,521,000 | 1,649,000 | 1,874,000 | 1,785,000 | 1,730,000 |
| Payables turnover | 11.27 | 10.06 | 11.18 | 12.11 | 12.74 | 12.86 | 7.91 | 7.76 | 7.45 | 7.34 | 7.64 | 8.08 | 8.44 | 8.41 | 10.32 | 10.02 | 9.46 | 8.25 | 8.65 | 8.78 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,908,000K ÷ $1,234,000K
= 11.27
The payables turnover ratio for Emerson Electric Co. has been relatively stable over the past eight quarters, ranging from a low of 5.44 in Q2 2022 to a high of 8.65 in Q1 2023.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could be a positive sign of efficient management of payables. Conversely, a lower ratio may suggest a longer payment period, potentially signaling liquidity challenges or strained supplier relationships.
Overall, the average payables turnover ratio of 6.59 over the period indicates that Emerson Electric Co. pays its suppliers approximately 6.59 times per year. This suggests that the company maintains a balance between managing its payables effectively while also maintaining good relationships with its suppliers.
Peer comparison
Dec 31, 2023