Rockwell Automation Inc (ROK)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,264,600 | 9,203,900 | 7,500,200 | 6,930,300 | 6,216,700 |
| Total current assets | US$ in thousands | 3,881,200 | 4,910,800 | 3,610,700 | 3,063,400 | 2,685,800 |
| Total current liabilities | US$ in thousands | 3,603,900 | 3,365,300 | 3,572,200 | 2,992,200 | 1,810,800 |
| Working capital turnover | 29.80 | 5.96 | 194.81 | 97.34 | 7.10 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,264,600K ÷ ($3,881,200K – $3,603,900K)
= 29.80
Rockwell Automation Inc's working capital turnover has fluctuated significantly over the past five years. In 2024, the working capital turnover ratio stood at 29.80, indicating that the company generated $29.80 in revenue for every dollar of working capital invested. This represents a substantial improvement compared to the previous year when the ratio was 5.96. The significant increase in 2024 suggests that the company efficiently managed its working capital to support revenue generation.
In 2023, the working capital turnover ratio was exceptionally high at 194.81, indicating that the company generated significant revenue relative to its working capital investment. This spike in the ratio could be due to various factors such as aggressive management of accounts receivable, inventory, and accounts payable.
In 2022, the working capital turnover ratio was 97.34, reflecting a strong performance in efficiently utilizing working capital to generate revenue. This level of efficiency was a positive sign for the company's financial management.
In comparison, the working capital turnover ratios in 2021 and 2020 were 7.10 and 5.96, respectively, indicating lower efficiency in working capital management during those years.
Overall, the fluctuation in Rockwell Automation Inc's working capital turnover over the years suggests varying degrees of effectiveness in leveraging working capital to drive revenue generation. The company's ability to maintain a high working capital turnover ratio indicates efficient utilization of resources and effective management of liquidity. It is essential for the company to sustain this efficiency to support its long-term financial performance and growth.
Peer comparison
Sep 30, 2024