Emerson Electric Company (EMR)

Working capital 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
Revenue (ttm)	US$ in thousands	17,393,000	16,864,000	16,417,000	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
Total current assets	US$ in thousands	10,192,000	8,820,000	9,009,000	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
Total current liabilities	US$ in thousands	5,742,000	7,592,000	7,664,000	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
Working capital turnover		3.91	13.73	12.21	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

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,393,000K ÷ ($10,192,000K – $5,742,000K)
= 3.91

The working capital turnover of Emerson Electric Company has varied significantly over the past few quarters, ranging from a low of 1.72 to a high of 195.30. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

A higher turnover ratio indicates that the company is effectively managing its working capital to support sales growth. The company showed a significant improvement in working capital turnover in the most recent quarter, increasing to 13.73 compared to the previous quarter's 3.91. This suggests that Emerson Electric Company was able to generate more sales revenue relative to its working capital in the latest period.

However, it is important to note that the working capital turnover ratio can be influenced by various factors such as industry trends, seasonality, and company-specific strategies. Therefore, it is essential to analyze this ratio in conjunction with other financial metrics to get a comprehensive understanding of the company's financial performance and efficiency in utilizing its working capital.