Emerson Electric Co's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 61.31.
Emerson Electric Co's Days Inventory for the
three
months ended in Mar. 2026 was 102.44.
Emerson Electric Co's Days Payable for the
three
months ended in Mar. 2026 was 59.85.
Therefore, Emerson Electric Co's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 103.90.
Emerson Electric Co (NYSE:EMR) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Emerson Electric Co Cash Conversion Cycle Related Terms
Emerson Electric Co Cash Conversion Cycle Historical Data
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The historical data trend for Emerson Electric Co's Cash Conversion Cycle 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.
EMR vs CMI, ITW, PH: Cash Conversion Cycle Comparison
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Emerson Electric Co Cash Conversion Cycle vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Cash Conversion Cycle falls into.
Emerson Electric Co Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Emerson Electric Co's Cash Conversion Cycle for the fiscal year that ended in Sep. 2025 is calculated as
* 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 (EMR) has a Cash Conversion Cycle of 103.90 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Emerson Electric Co and its competitors.
Is Emerson Electric Co's Cash Conversion Cycle too high?
Emerson Electric Co's current Cash Conversion Cycle is 103.90. The Industrial Products industry median Cash Conversion Cycle is 122.23. Emerson Electric Co's value of 103.90 is 15% below this industry median. Overall, Emerson Electric Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Emerson Electric Co's Cash Conversion Cycle compare to CMI and ITW?
Emerson Electric Co's Cash Conversion Cycle of 103.90 can be compared against companies in the Industrial Products industry. The industry median Cash Conversion Cycle is 122.23. Emerson Electric Co's value of 103.90 is 15% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Industrial Products company?
The median Cash Conversion Cycle among Industrial Products companies is 122.23, based on 3,039 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Emerson Electric Co's current Cash Conversion Cycle of 103.90 is 15% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Emerson Electric Co and its competitors. For the Industrial Products industry, the median Cash Conversion Cycle is 122.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emerson Electric Co's current Cash Conversion Cycle is 103.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emerson Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Emerson Electric Co (EMR) is currently considered Modestly Overvalued. The stock's GF Value™ is $129.10, compared to a current price of $142.76 — trading 10.6% above its estimated fair value. The current Cash Conversion Cycle is 103.90 and 15% below the Industrial Products industry median of 122.23. Emerson Electric Co's overall GF Score™ is 84/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Emerson Electric Co (EMR), the current Cash Conversion Cycle is 103.90 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Emerson Electric Co (EMR) Overvalued in 2026?
Based on GuruFocus' analysis, Emerson Electric Co stock appears to be overvalued.
The current stock price of $142.76 is trading 10.6% above its estimated GF Value™ of $129.10.
GuruFocus considers Emerson Electric Co to be Modestly Overvalued.
Key valuation signals for EMR:
Cash Conversion Cycle: 103.90
GF Value™: $129.10 vs. price of $142.76 (10.6% above fair value)
Industry Position: 15% below the Industrial Products median
No single metric tells the full story. See the EMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1890 as the first manufacturer of electric fans in North America, Emerson Electric has become a leading industrial automation player through the acquisition of established brands. Emerson organizes its business into seven segments that sell a wide range of automation software, power tools, and automation hardware such as valves, gauges, and switches. In recent years, Emerson divested its climate technology and consumer businesses to become more of a pure-play industrial automation company. The automation of a factory is an enticing long-term proposition for manufacturers, helping reduce accident rates and raise uptime and productivity.
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