Emerson Electric Company (EMR)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,827,000 | 15,124,000 | 16,394,000 | 17,488,000 | 18,549,000 | 19,642,000 | 19,229,000 | 18,908,000 | 18,579,000 | 18,267,000 | 17,878,000 | 17,095,000 | 16,795,000 | 16,785,000 | 17,198,000 | 17,968,000 | 18,376,000 | 18,372,000 | 18,289,000 | 18,061,000 |
| Receivables | US$ in thousands | 3,365,000 | 3,077,000 | 3,027,000 | 2,801,000 | 2,747,000 | 3,436,000 | 3,432,000 | 2,958,000 | 2,745,000 | 2,971,000 | 2,754,000 | 2,754,000 | 2,652,000 | 2,802,000 | 2,512,000 | 2,641,000 | 2,726,000 | 2,985,000 | 2,901,000 | 2,911,000 |
| Receivables turnover | 4.70 | 4.92 | 5.42 | 6.24 | 6.75 | 5.72 | 5.60 | 6.39 | 6.77 | 6.15 | 6.49 | 6.21 | 6.33 | 5.99 | 6.85 | 6.80 | 6.74 | 6.15 | 6.30 | 6.20 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,827,000K ÷ $3,365,000K
= 4.70
The receivables turnover for Emerson Electric Co. has shown a declining trend over the past three quarters, with the ratio decreasing from 8.31 in Q1 2023 to 5.77 in Q1 2024. This indicates that the company is taking longer to collect payments from its customers.
Although the ratio increased in Q4 2023 to 6.02 from 5.77 in the previous quarter, it remains below the levels seen in the same quarter a year ago. A lower receivables turnover may suggest potential issues with the company's credit policies, collection efforts, or the quality of its receivables.
Overall, Emerson Electric Co. should closely monitor its receivables turnover and take proactive steps to improve collections efficiency, such as tightening credit terms, enhancing collection processes, and managing credit risk effectively.
Peer comparison
Dec 31, 2023
See also:
Emerson Electric Company Receivables Turnover (Quarterly Data)