Rockwell Automation Inc (ROK)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 5.24 5.40 4.92 5.15 5.17 6.15 6.39 6.69 7.01 7.29 7.57 7.70 8.04 8.97 7.94 8.66 8.71 9.29 7.50 6.88
Receivables turnover 4.72 4.25 3.91 4.11 4.29 4.39 4.31 4.60 4.85 4.87 4.68 4.27 4.45 5.01 5.33 5.14 5.13 5.62 5.42 5.37
Payables turnover 8.27 6.60 6.99 6.89 6.35 6.31 6.39 6.69 7.16 6.54 6.24 6.51 7.14 7.62 8.04 7.34 7.69 7.70 7.81 6.93
Working capital turnover 11.07 5.95 18.32 27.42 69.92 198.12 34.79 28.14 33.07 97.34 8.06 7.51 8.25 7.15 9.16 6.71 7.09 6.31 6.67 6.05

Rockwell Automation Inc's activity ratios provide insight into the efficiency of its operational processes. The inventory turnover ratio indicates the company's ability to convert inventory into sales, with a consistent range of 3.54 to 3.80 over the past few quarters, suggesting relatively stable inventory management.

The receivables turnover ratio reflects the speed at which Rockwell collects outstanding receivables. The ratio has fluctuated, ranging from 3.84 to 4.72, indicating variability in the company's collection efficiency during the periods under review.

The payables turnover ratio reveals Rockwell's efficiency in paying suppliers and managing its trade credit. The ratio has shown some variability, ranging from 4.53 to 5.81, indicating fluctuations in the company's payment practices over the past quarters.

The working capital turnover ratio measures how effectively Rockwell utilizes its working capital to generate sales. The notable variability in this ratio, with figures ranging from 5.86 to 201.57, suggests significant changes in the company's working capital management and sales generation efficiency throughout the periods under review.

Overall, while Rockwell Automation Inc has exhibited relatively stable inventory management, the variability in receivables turnover, payables turnover, and working capital turnover ratios indicates some fluctuations in the company's efficiency in managing its accounts receivable, payables, and working capital during the periods under consideration.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 69.60 67.60 74.22 70.88 70.59 59.31 57.11 54.52 52.06 50.09 48.24 47.39 45.40 40.68 45.95 42.15 41.91 39.30 48.68 53.05
Days of sales outstanding (DSO) days 77.31 85.96 93.40 88.76 85.12 83.10 84.60 79.27 75.24 75.02 78.07 85.41 82.02 72.92 68.42 71.07 71.14 64.97 67.39 67.97
Number of days of payables days 44.15 55.34 52.19 52.95 57.47 57.84 57.11 54.57 51.01 55.84 58.47 56.09 51.10 47.91 45.42 49.76 47.47 47.42 46.72 52.69

To interpret Rockwell Automation Inc's activity ratios, we will analyze its days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables. These ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

The trend analysis of DOH shows an increase from 76.82 days in March 2022 to 99.06 days in December 2023. This indicates that the company's inventory turnover has slowed, resulting in an increase in the average number of days its inventory is held before being sold. This may imply potential issues with inventory management efficiency.

The DSO trend also shows an upward trend, increasing from 78.40 days in March 2022 to 77.36 days in December 2023. This suggests that the company is taking longer to collect its receivables, which could negatively impact its cash flow and working capital management.

Moreover, the trend in the number of days of payables has fluctuated, with a slight decrease from 76.90 days in March 2022 to 62.84 days in December 2023. This suggests that the company has been able to manage its payables more efficiently, which can positively impact its cash flow and liquidity.

Overall, the increasing trend in DOH and DSO indicates potential inefficiencies in inventory management and receivables collection, while the fluctuating trend in payables management suggests some improvement. Management should closely monitor these ratios to ensure optimal working capital management and operational efficiency.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 12.96 13.45 13.41 13.19 12.65 13.01 12.92 12.55 12.35 11.91 12.14 11.31 10.81 10.89 11.36 11.92 11.60 11.58 11.90 11.98
Total asset turnover 0.81 0.81 0.75 0.73 0.71 0.71 0.68 0.68 0.67 0.65 0.78 0.75 0.75 0.86 0.87 1.00 0.94 1.08 1.08 1.07

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. Rockwell Automation Inc's fixed asset turnover has been relatively stable, ranging between 12.65 and 13.24 over the past eight quarters. This indicates that the company has been consistently generating approximately $13 of revenue for every dollar invested in fixed assets.

The total asset turnover ratio measures the efficiency of all assets in generating sales. Rockwell Automation Inc's total asset turnover has also been relatively stable, fluctuating between 0.68 and 0.81 over the same period. This implies that the company has been generating around $0.80 to $0.81 in sales for every dollar invested in total assets.

Overall, the company's long-term activity ratios suggest that it has been effectively utilizing both fixed and total assets to generate revenue, with relatively consistent performance across the quarters analyzed.