Rockwell Automation Inc (ROK)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.39% | 41.36% | 41.81% | 41.75% | 43.74% |
| Operating profit margin | 9.61% | 10.34% | 11.51% | 11.16% | 14.43% |
| Pretax margin | 18.66% | 14.49% | 22.22% | 18.28% | 13.59% |
| Net profit margin | 15.07% | 12.43% | 19.60% | 16.46% | 10.49% |
Based on the profitability ratios of Rockwell Automation Inc, it is evident that the company's performance has fluctuated over the past five years. The gross profit margin has fluctuated within a relatively narrow range, with a slight increase in 2023 compared to the previous year. This suggests that the company has effectively managed its cost of goods sold.
The operating profit margin has also varied, but with a generally increasing trend until 2023, indicating improvements in operational efficiency and cost management. However, the pretax margin experienced significant fluctuations, with a notable decrease in 2022 followed by a substantial increase in 2023. This may indicate volatility in the company's pre-tax profitability and operating income.
Likewise, the net profit margin has shown variability, but overall, it has experienced growth over the five-year period. The notable increase in 2023 suggests that the company has been effectively managing its taxes and interest expenses to enhance its bottom line profitability.
Overall, while the company has shown some fluctuations in its profitability margins, there is evidence of improvement in operational and net profitability, especially in the most recent year. However, it is essential for stakeholders to assess the reasons behind these fluctuations to gauge the sustainability of the company's profitability performance.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.82% | 7.21% | 7.45% | 9.55% | 15.65% |
| Return on assets (ROA) | 12.27% | 8.66% | 12.69% | 14.09% | 11.38% |
| Return on total capital | 28.85% | 21.63% | 27.92% | 41.29% | 42.33% |
| Return on equity (ROE) | 38.95% | 34.20% | 56.83% | 99.57% | 172.14% |
The profitability ratios of Rockwell Automation Inc indicate the company's ability to generate profit from its assets and capital. The operating return on assets (Operating ROA) has shown a positive trend over the past five years, increasing from 11.38% in 2021 to 14.98% in 2023, reflecting the company's improved operational efficiency in generating earnings from its total assets.
Similarly, the return on assets (ROA) has been relatively healthy, with a peak of 14.07% in 2020 and a slight dip in 2022, before rebounding to 12.22% in 2023, indicating a consistent ability to generate profit from its assets.
The return on total capital has also shown a positive trend, increasing from 19.13% in 2021 to 25.94% in 2023. This ratio reflects the effectiveness of the company in generating returns from the total capital employed in the business.
The return on equity (ROE) has exhibited a fluctuating trend, with a considerable decrease in 2021 compared to the previous two years, before rebounding to 38.79% in 2023. This ratio signifies the company's ability to generate profit from shareholders' equity, and while there have been fluctuations, the overall trend remains positive.
Overall, Rockwell Automation Inc's profitability ratios indicate a generally strong performance in generating returns from its assets, capital, and equity, showcasing the company's ability to efficiently utilize its resources to generate profit.