Emerson Electric Company — Earnings Quality Grade F
EMR · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 63 days, change +2 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 3.0%, CFFO -7.0%. Cash follows revenue
Expense Quality
Inventory 1.5% vs COGS -1.3%. Normal
CapEx growth 2.9% vs revenue 3.0%. Normal
SG&A/Gross Profit = 53.6%. Normal
Gross margin 52.8%, change +2.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.35. Profits backed by cash
FCF $2.7B, FCF/NI = 1.16
Accruals ratio = -1.9%. Low accruals
Cash $1.5B covers only 11% of debt $13.8B
Balance Sheet Health
Goodwill+Intangibles $27.7B = 136% of equity. Over 50%
Debt/EBITDA = 2.8x. Healthy
Other assets 0.0% vs revenue 3.0%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -2.67 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09