Rockwell Automation Inc (ROK)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 471,000 | 1,071,800 | 490,700 | 662,200 | 704,600 |
| Short-term investments | US$ in thousands | 300 | 600 | 12,600 | 600 | 600 |
| Total current liabilities | US$ in thousands | 3,603,900 | 3,365,300 | 3,572,200 | 2,992,200 | 1,810,800 |
| Cash ratio | 0.13 | 0.32 | 0.14 | 0.22 | 0.39 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($471,000K
+ $300K)
÷ $3,603,900K
= 0.13
The cash ratio of Rockwell Automation Inc has exhibited fluctuations over the past five years. In 2024, the cash ratio decreased to 0.13 from 0.32 in 2023. This decline indicates that the company may have a lower level of cash and cash equivalents relative to its current liabilities compared to the previous year. However, it is important to note that a cash ratio of 0.13 still suggests that Rockwell Automation Inc has sufficient liquid assets to cover its short-term obligations.
Looking at the trend over the past five years, the cash ratio was highest in 2020 at 0.39, indicating a relatively stronger liquidity position at that time. Subsequently, there was a decline in 2021 to 0.22 followed by further decreases in 2022 and 2024. The fluctuations in the cash ratio may reflect changes in the company's cash management practices, working capital efficiency, or investment decisions.
Overall, while the cash ratio of Rockwell Automation Inc has shown variability, it is essential for investors and analysts to consider other financial ratios and qualitative factors to gain a comprehensive understanding of the company's liquidity position and financial health.
Peer comparison
Sep 30, 2024