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.
Peer comparison
Sep 30, 2024