Emerson Electric Company (EMR)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,435,000 | 15,115,000 | 19,622,000 | 18,267,000 | 16,785,000 |
| Receivables | US$ in thousands | 3,446,000 | 3,077,000 | 3,436,000 | 2,971,000 | 2,802,000 |
| Receivables turnover | 5.06 | 4.91 | 5.71 | 6.15 | 5.99 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $17,435,000K ÷ $3,446,000K
= 5.06
Emerson Electric Company's receivables turnover ratio has shown some fluctuations over the past five years. In 2024, the company's receivables turnover stood at 5.06, slightly higher than the previous year's ratio of 4.91 in 2023. This indicates that the company collected its accounts receivable 5.06 times on average during 2024.
Comparing recent years, the 2024 ratio of 5.06 is lower than the 2022 ratio of 5.71 and the 2021 ratio of 6.15, but higher than the 2020 ratio of 5.99. This suggests that Emerson Electric Company may have taken longer to collect its accounts receivable in 2024 compared to the previous years.
A declining receivables turnover ratio could indicate potential issues with the company's credit policies, collection efforts, or the quality of its customers. Conversely, an increasing ratio may signify more efficient management of accounts receivable. Further analysis and comparison with industry benchmarks would be beneficial to fully assess the effectiveness of Emerson Electric Company's receivables management.
Peer comparison
Sep 30, 2024