Rockwell Automation Inc (ROK)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,134,800 | 9,203,000 | 8,773,300 | 8,412,100 | 7,887,500 | 7,627,800 | 7,344,400 | 7,240,700 | 7,215,500 | 6,930,800 | 6,691,200 | 6,234,000 | 6,137,000 | 6,252,500 | 6,412,700 | 6,682,400 | 6,660,100 | 6,622,300 | 6,621,600 | 6,682,000 |
| Total current assets | US$ in thousands | 4,135,900 | 4,910,800 | 4,401,100 | 4,101,000 | 3,859,500 | 3,610,700 | 3,492,300 | 3,284,900 | 3,132,300 | 3,063,400 | 3,286,200 | 2,969,500 | 2,932,100 | 2,685,800 | 2,942,500 | 2,758,200 | 3,007,500 | 2,985,700 | 2,945,800 | 2,976,800 |
| Total current liabilities | US$ in thousands | 3,310,900 | 3,365,300 | 3,922,100 | 3,794,200 | 3,746,700 | 3,572,200 | 3,281,200 | 3,027,600 | 2,914,100 | 2,992,200 | 2,456,300 | 2,139,800 | 2,188,600 | 1,810,800 | 2,242,100 | 1,762,000 | 2,067,500 | 1,936,800 | 1,952,500 | 1,871,900 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,134,800K ÷ ($4,135,900K – $3,310,900K)
= 11.07
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio indicates more efficient use of working capital.
Rockwell Automation Inc's working capital turnover has fluctuated over the periods presented. The ratios range from 5.86 to 201.57, indicating significant variability in the efficiency of working capital utilization.
The drastic fluctuations in the ratio may point to changes in the company's working capital management or sales volume. A substantial increase in the ratio, such as the sharp rise from 5.86 to 201.57 between Sep 30, 2022, and Dec 31, 2022, could indicate a rapid increase in sales relative to working capital, reflecting more efficient utilization of resources. Conversely, a significant decrease in the ratio, as seen from Dec 31, 2022, to Mar 31, 2023, may warrant further investigation into the causes of the decline in efficiency.
It is important to assess the working capital turnover ratio in conjunction with other financial metrics to gain a comprehensive understanding of Rockwell Automation Inc's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023