Emerson Electric Company (EMR)
Working capital 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 |
| Total current assets | US$ in thousands | 8,666,000 | 13,819,000 | 15,760,000 | 8,985,000 | 9,000,000 | 8,506,000 | 9,375,000 | 13,539,000 | 10,860,000 | 8,432,000 | 8,766,000 | 7,961,000 | 7,681,000 | 8,806,000 | 7,879,000 | 8,032,000 | 7,196,000 | 7,139,000 | 7,350,000 | 7,152,000 |
| Total current liabilities | US$ in thousands | 7,765,000 | 5,032,000 | 6,614,000 | 7,549,000 | 8,160,000 | 7,777,000 | 8,812,000 | 8,072,000 | 5,331,000 | 6,246,000 | 6,670,000 | 6,294,000 | 6,376,000 | 5,785,000 | 5,985,000 | 7,940,000 | 6,340,000 | 5,976,000 | 6,218,000 | 6,714,000 |
| Working capital turnover | 17.57 | 1.72 | 1.79 | 12.18 | 22.08 | 26.94 | 34.15 | 3.46 | 3.36 | 8.36 | 8.53 | 10.25 | 12.87 | 5.56 | 9.08 | 195.30 | 21.47 | 15.80 | 16.16 | 41.24 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,827,000K ÷ ($8,666,000K – $7,765,000K)
= 17.57
Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales revenue. A higher working capital turnover indicates that the company is efficient in using its working capital to generate sales.
Analyzing the data provided for Emerson Electric Co., we observe fluctuations in the working capital turnover ratio over the quarters. In Q1 2023, the working capital turnover was exceptionally high at 22.06, signifying a strong efficiency in generating sales relative to its working capital. This was followed by a significant decline in subsequent quarters, reaching a low of 1.73 in Q4 2023.
The working capital turnover ratio increased to 17.66 in Q1 2024, indicating a considerable improvement in efficiency compared to the previous quarter. However, it is important to note that the working capital turnover ratio tends to fluctuate over time based on various factors such as sales seasonality, inventory management, and accounts receivable collection.
Overall, the trend in Emerson Electric Co.'s working capital turnover suggests variability in the company's efficiency in utilizing its working capital effectively to drive sales. It is recommended for investors and analysts to evaluate this ratio alongside other financial indicators to gain a comprehensive understanding of the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023
See also:
Emerson Electric Company Working Capital Turnover (Quarterly Data)