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Emerson Electric Co Inventory Turnover

: 1.31 (As of Jun. 2021)
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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Emerson Electric Co's Cost of Goods Sold for the three months ended in Jun. 2021 was $2,715 Mil. Emerson Electric Co's Total Inventories for the quarter that ended in Jun. 2021 was $2,065 Mil. Emerson Electric Co's Inventory Turnover for the quarter that ended in Jun. 2021 was 1.31.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Emerson Electric Co's Days Inventory for the three months ended in Jun. 2021 was 69.40.

Total Inventories can be measured by Days Sales of Inventory (DSI). Emerson Electric Co's days sales of inventory (DSI) for the three months ended in Jun. 2021 was 40.12.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Emerson Electric Co's Inventory-to-Revenue for the quarter that ended in Jun. 2021 was 0.44.


Emerson Electric Co Inventory Turnover Historical Data

The historical data trend for Emerson Electric Co's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Emerson Electric Co Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Inventory Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.68 6.08 5.69 5.72 5.13

Emerson Electric Co Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.10 1.33 1.24 1.28 1.31

Emerson Electric Co Inventory Turnover Calculation

Emerson Electric Co's Inventory Turnover for the fiscal year that ended in Sep. 2020 is calculated as

Inventory Turnover (A: Sep. 2020 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (A: Sep. 2020 ) / ((Total Inventories (A: Sep. 2019 ) + Total Inventories (A: Sep. 2020 )) / count )
=9776 / ((1880 + 1928) / 2 )
=9776 / 1904
=5.13

Emerson Electric Co's Inventory Turnover for the quarter that ended in Jun. 2021 is calculated as

Inventory Turnover (Q: Jun. 2021 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (Q: Jun. 2021 ) / ((Total Inventories (Q: Mar. 2021 ) + Total Inventories (Q: Jun. 2021 )) / count )
=2715 / ((2016 + 2114) / 2 )
=2715 / 2065
=1.31

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Emerson Electric Co  (NYSE:EMR) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Emerson Electric Co's Days Inventory for the three months ended in Jun. 2021 is calculated as:

Days Inventory =Total Inventories (Q: Jun. 2021 )/Cost of Goods Sold (Q: Jun. 2021 )*Days in Period
=2065/2715*365 / 4
=69.40

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

Emerson Electric Co's Days Sales of Inventory for the three months ended in Jun. 2021 is calculated as:

Days Sales of Inventory (DSI)=Total Inventories (Q: Jun. 2021 )/Revenue (Q: Jun. 2021 )*Days in Period
=2065/4697*365 / 4
=40.12

3. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Emerson Electric Co's Inventory to Revenue for the quarter that ended in Jun. 2021 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=2065 / 4697
=0.44

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


Emerson Electric Co Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Emerson Electric Co's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Emerson Electric Co Business Description

Emerson Electric Co logo
Industry
Industrials » Industrial Products NAICS : 335999 SIC : 3569
Traded in Other Exchanges
Address
8000 West Florissant Avenue, P.O. Box 4100, St. Louis, MO, USA, 63136
Emerson Electric is a multi-industrial conglomerate that operates under two business platforms: Automation Solutions and Commercial and Residential Solutions. The latter is further subdivided into two operating segments: climate technologies, which sells HVAC and refrigeration products and services, as well as tools and home products, which sells tools and compressors, among other products and services. Commercial and residential solutions boasts several household brands, including Copeland, InSinkErator, and RIDGID. Automation solutions is most known for its process manufacturing solutions, which consists of measurement instrumentation, as well as valves and actuators, among other products and services. About half of the firm's geographic sales take place in the United States.
Executives
Easter William H Iii director 370 17TH ST STE 2500 DENVER CO 80202
Bulanda Mark J officer: Sr. VP Planning & Dev. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
Farr David N director, officer: Chairman of Board & CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: FARR DAVID N a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Froedge James officer: Exec. Pres. Comm & Res. Sols. C/O EMERSON ELECTRIC CO, 8000 W. FLORISSANT AVENUE ST. LOUS MO 63136
Train Michael H. officer: Pres & Chair Aut Solutions C/O EMERSON ELECTRIC CO. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
Qubit Capital Llc director 1251 AVE OF AMERICAS SUITE 934 NEW YORK NY 10020
Button Bell Katherine officer: Sr. VP & Chief Marketing Off. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
Pelch Steven J. officer: COO & Exec VP Org Plan & Dev EMERSON ELECTRIC CO. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
Golden Arthur F director 450 LEXINGTON AVE NEW YORK NY 10017
Craighead Martin S director 2929 ALLEN PARKWAY SUITE 2100 HOUSTON TX 77019
Lee Lori M director 208 S. AKARD ST., ROOM 3025 DALLAS TX 75202
Bolten Joshua B. director ROCK CREEK GLOBAL ADVISORS 1401 I STREET NW, SUITE 1120 WASHINGTON DC 20005
Flach Gloria A director C/O NORTHROP GRUMMAN CORPORATION 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Boersig Clemens A H director C/O EMERSON ELECTRIC COMPANY 8000 WEST FLORISSANT AVENUE ST. LOUIS MO 63136
Levatich Matthew S director HARLEY-DAVIDSON MOTOR COMPANY 3700 WEST JUNEAU AVENUE MILWAUKEE WI 53208

Emerson Electric Co Headlines

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