Rockwell Automation Inc (ROK)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,167,400 | 1,736,700 | 1,424,500 | 1,249,100 | 1,178,700 |
| Total current liabilities | US$ in thousands | 3,365,300 | 3,572,200 | 2,992,200 | 1,810,800 | 1,936,800 |
| Quick ratio | 0.96 | 0.63 | 0.70 | 1.08 | 1.15 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,071,800K
+ $600K
+ $2,167,400K)
÷ $3,365,300K
= 0.96
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Looking at Rockwell Automation Inc's quick ratio over the past five years, we observe fluctuations.
In 2023, the quick ratio was 1.04, indicating that the company had $1.04 in liquid assets available to cover each dollar of its current liabilities. This marks an improvement compared to the previous year's quick ratio of 0.72. While the 2023 quick ratio is higher than 2022, it is still below the 2019 and 2020 levels, which were 1.16 and 1.24, respectively.
The upward trend in the quick ratio from 2022 to 2023 may suggest an enhanced ability to meet short-term obligations using liquid assets. However, it is important to consider the impact of this metric in conjunction with other financial indicators to gain a comprehensive understanding of the company's liquidity position.
Peer comparison
Sep 30, 2023