Emerson Electric Company (EMR)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 15,901,000 | 14,918,000 | 14,578,000 | 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 |
| Payables | US$ in thousands | 1,335,000 | 1,251,000 | 1,271,000 | 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 |
| Payables turnover | 11.91 | 11.92 | 11.47 | 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 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $15,901,000K ÷ $1,335,000K
= 11.91
Emerson Electric Company's payables turnover ratio has shown fluctuations over the past few quarters, ranging from a low of 7.45 to a high of 12.86. Generally, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could suggest efficient management of payables.
The ratios for the most recent quarters, such as 11.91 in September 2024 and 11.92 in June 2024, suggest that Emerson Electric is able to settle its payables relatively quickly. However, it's important to note that the ratio has decreased from the previous high of 12.86 in December 2022.
The lower ratios in some quarters, such as 7.76 in June 2022 and 7.45 in March 2022, may indicate that the company took longer to pay its suppliers during those periods. This could be due to various reasons such as changes in payment terms, delays in processing invoices, or cash flow constraints.
Overall, Emerson Electric Company's payables turnover ratio indicates a varying trend in the company's management of its accounts payable. Further analysis of the company's payment policies, supplier relationships, and industry norms would be necessary to fully understand the implications of these fluctuations.
Peer comparison
Sep 30, 2024