Rockwell Automation Inc (ROK)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,203,900 | 7,500,200 | 6,930,300 | 6,216,700 | 6,630,500 |
| Total current assets | US$ in thousands | 4,910,800 | 3,610,700 | 3,063,400 | 2,685,800 | 2,985,700 |
| Total current liabilities | US$ in thousands | 3,365,300 | 3,572,200 | 2,992,200 | 1,810,800 | 1,936,800 |
| Working capital turnover | 5.96 | 194.81 | 97.34 | 7.10 | 6.32 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,203,900K ÷ ($4,910,800K – $3,365,300K)
= 5.96
The working capital turnover ratio measures a company's efficiency in using its working capital to generate sales revenue. A higher working capital turnover ratio indicates better utilization of working capital.
For Rockwell Automation Inc, the working capital turnover ratio has fluctuated significantly over the past five years. In 2023, the ratio stood at 5.86, representing a decrease from the exceptionally high ratio of 201.57 in 2022. This marked decrease suggests a significant change in the company's working capital management and sales generation. However, both 2022 and 2023 figures are unusually high, and it might be worth investigating the reasons behind such abnormal values.
In the preceding years, the working capital turnover ratio was more stable, with values of 98.28 in 2021, 7.23 in 2020, and 6.38 in 2019. These figures indicate that the company's efficiency in using its working capital to generate sales varied significantly over this period.
Overall, while the 2023 figure is notably lower than the extreme value in 2022, it is important to consider the historical trend and the factors underlying these fluctuations when assessing Rockwell Automation Inc's working capital turnover ratio.
Peer comparison
Sep 30, 2023