Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 9, 2026
Emerson Electric Co (EMR)
A forensic read on Emerson Electric Co built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
7.7
Distress distance
Clean
Earnings quality
4
Forensic signals
36.3
P / E (ttm)
11.3%
ROE
$88.3B
Market cap
1.41%
Dividend yield
3.0%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Emerson Electric Co earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 7.7, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.40×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, operating cash flow was 0.40× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
61d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 57 to 61 days FY2024→FY2025 (receivables +6% vs revenue +3%). Receivables are creeping up relative to sales. Only 40¢ of operating cash arrived for every dollar of profit reported over FY2023–FY2025 ($7.1B against $17.5B), and the receivables balance is one of the places the rest is sitting. Across FY2021–FY2025 the day count ran 81 → 69 → 58 → 57 → 61 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Deferred revenue was roughly flat (-1%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build.
94d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 89 to 94 FY2024→FY2025 (against cost of goods sold; inventory +2% vs -1% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
6.8%
FY2025
Return on invested capital.Return on invested capital is 6.8% in the latest fiscal year and steady — slightly below its ~9% cost of capital — reinvestment is roughly a wash.
Key fundamentals
Latest Revenue$18.02B
Revenue Growth YoY+3.0%
Revenue CAGR (3yr)+9.3%
Net Margin12.7%
Free Cash Flow$2.67B
Return on Equity11.3%
Debt / Equity0.44x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Emerson Electric Co's actual 10-K/10-Q/8-K filings?