Emerson monitors operating working capital at 8.5% of sales, with focus on inventory/receivables efficiency. The 2023 increase reflected higher inventory for growth and supply chain reliability. Processes balance liquidity needs with support for sales growth and customer service.
At September 30, 2023, operating working capital as a percent of sales was 8.5 percent compared with 7.2 percent in 2022 and 3.5 percent in 2021. Operating working capital remained elevated in 2023 due to higher inventory levels to support sales growth and higher receivables.