Innovation Engine Report
Endnotes
Operating Leverage, or Incremental Margins, throughout the presentation is defined as the ratio of the change in adjusted segment EBITA for the current period less the prior
period, divided by the change in the net sales for the current period less the prior period.
Emerson
Less: AspenTech
Emerson (excluding AspenTech)
2022 Q3
Net Sales
Adjusted Segment EBITA
$3,465M
$239M
$806M
$3,226 A
$129M
$677M B
2023 Q3
Net Sales
Adjusted Segment EBITA
$3,946M
$320M
$1,060
$148
$3,626M C
$912 D
Operating Leverage (excluding AspenTech) =
(D - B)
(C - A)
($912M - $677M)
($3,626M - $3,226M)
59%
Free Cash Flow Conversion throughout the presentation is defined as the ratio of free cash flow to adjusted net earnings (prior to non-controlling interests in subsidiaries).
Free Cash Flow
Free Cash Flow Conversion =
Adjusted Net Earnings (Pre-Non-Controlling Interest)
$769M
$792M
= 97%
15
EMERSONView entire presentation