Rockwell Automation Inc (ROK)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,071,800 | 490,700 | 662,200 | 704,600 | 1,018,400 |
| Short-term investments | US$ in thousands | 600 | 12,600 | 600 | 600 | 39,600 |
| Total current liabilities | US$ in thousands | 3,365,300 | 3,572,200 | 2,992,200 | 1,810,800 | 1,936,800 |
| Cash ratio | 0.32 | 0.14 | 0.22 | 0.39 | 0.55 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,071,800K
+ $600K)
÷ $3,365,300K
= 0.32
The cash ratio of Rockwell Automation Inc has exhibited a fluctuating trend over the past five years. As of September 30, 2023, the cash ratio stood at 0.40, indicating that the company held $0.40 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement from the previous year's ratio of 0.23, suggesting a higher level of liquidity in the current reporting period compared to the prior year. However, when compared to the ratios of 2021, 2020, and 2019, the current cash ratio is lower.
The declining trend in the cash ratio indicates a potential decrease in the company's ability to meet its short-term obligations using its cash reserves alone. While a higher cash ratio is generally preferred as it signifies a stronger ability to cover immediate liabilities, it's important to consider the company's overall liquidity position in combination with other financial metrics for a comprehensive assessment of its financial health.
Peer comparison
Sep 30, 2023