Rockwell Automation Inc (ROK)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	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
Receivables	US$ in thousands	1,802,000	2,167,400	1,736,700	1,424,500	1,249,100
Total current liabilities	US$ in thousands	3,603,900	3,365,300	3,572,200	2,992,200	1,810,800
Quick ratio		0.63	0.96	0.63	0.70	1.08

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($471,000K + $300K + $1,802,000K) ÷ $3,603,900K
= 0.63

The quick ratio of Rockwell Automation Inc has fluctuated over the past five years, ranging from a low of 0.63 in both 2022 and 2024 to a high of 1.08 in 2020. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its liquid assets alone. The downward trend in the quick ratio from 2020 to 2024 suggests a declining ability to cover short-term obligations swiftly.

In 2023, the quick ratio improved to 0.96, indicating a temporary strengthening of the company's liquidity position. However, this improvement was not sustained in the following year, leading back to a low quick ratio of 0.63 in 2024.

Overall, the decreasing trend in the quick ratio may raise concerns about Rockwell Automation Inc's liquidity and ability to meet its short-term obligations efficiently. Further analysis of the company's current assets and liabilities is warranted to understand the factors driving these fluctuations in the quick ratio.