Rockwell Automation Inc (ROK)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.67 | 5.44 | 6.21 | 7.33 | 9.01 |
| Receivables turnover | 4.59 | 4.25 | 4.32 | 4.87 | 4.98 |
| Payables turnover | 8.52 | 6.65 | 6.37 | 6.57 | 7.65 |
| Working capital turnover | 29.80 | 5.96 | 194.81 | 97.34 | 7.10 |
Inventory turnover measures how effectively a company manages its inventory. Rockwell Automation Inc's inventory turnover has been relatively consistent over the past five years, ranging from 5.44 to 9.01 times per year. A higher turnover indicates that the company is selling inventory more quickly.
Receivables turnover reflects how efficiently a company collects payments from its customers. Rockwell Automation Inc's receivables turnover has fluctuated between 4.25 and 4.98 times per year, suggesting that the company has been consistent in collecting payments from customers.
Payables turnover measures how quickly a company pays its suppliers. Rockwell Automation Inc's payables turnover has shown a slight increasing trend over the past five years, with values ranging from 6.37 to 8.52 times per year. A higher turnover indicates that the company is managing its payables more efficiently.
Working capital turnover shows how effectively a company utilizes its working capital to generate sales. Rockwell Automation Inc's working capital turnover has varied significantly, with a substantial increase in 2022 and 2024 compared to prior years. A higher turnover indicates that the company is using its working capital more efficiently to generate revenue.
Overall, Rockwell Automation Inc's activity ratios suggest that the company is effectively managing its inventory, collecting payments from customers, paying suppliers, and utilizing working capital to generate sales. The trends in these ratios indicate that the company has been relatively consistent or improving in these areas over the past five years.
Average number of days
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.36 | 67.08 | 58.80 | 49.82 | 40.49 |
| Days of sales outstanding (DSO) | days | 79.58 | 85.95 | 84.52 | 75.02 | 73.34 |
| Number of days of payables | days | 42.82 | 54.92 | 57.34 | 55.54 | 47.69 |
Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory. The decreasing trend in Rockwell Automation Inc's DOH from 40.49 days in 2020 to 64.36 days in 2024 indicates that the company is holding inventory for a longer period. This might imply potential issues with inventory management efficiency or changes in demand patterns.
Days of Sales Outstanding (DSO) evaluates how quickly a company collects its accounts receivable. The fluctuating DSO trend for Rockwell Automation Inc, ranging from 73.34 days in 2020 to 85.95 days in 2023, and then decreasing to 79.58 days in 2024, suggests variations in the company's credit policies or the effectiveness of its collection efforts.
Number of Days of Payables reflects how long it takes a company to pay its suppliers. Rockwell Automation Inc's days of payables have been unstable, with fluctuations from 47.69 days in 2020 to 57.34 days in 2022, with a significant decrease to 42.82 days in 2024. This implies potential changes in the company's vendor payment terms or management of trade credit.
Overall, while Rockwell Automation Inc's activity ratios exhibit variability over the past five years, close monitoring and further analysis are necessary to understand the underlying factors driving these fluctuations and to assess the effectiveness of the company's working capital management strategies.
Long-term
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 10.64 | 13.45 | 12.79 | 11.91 | 10.82 |
| Total asset turnover | 0.74 | 0.81 | 0.70 | 0.65 | 0.86 |
The fixed asset turnover ratio for Rockwell Automation Inc has shown a declining trend over the past five years, indicating that the company is generating less revenue from its fixed assets. This could suggest potential inefficiencies in utilizing its long-term assets to generate sales. In contrast, the total asset turnover ratio has been fluctuating, with a peak in 2020 and a relative decline in subsequent years. This could imply that Rockwell Automation Inc's overall asset utilization in generating sales has been inconsistent. Further analysis may be required to understand the factors contributing to these trends and their impact on the company's long-term operational efficiency and profitability.