Rockwell Automation Inc (ROK)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 484,200 | 884,500 | 775,200 | 797,600 | 693,700 |
| Total assets | US$ in thousands | 11,232,100 | 11,304,000 | 10,758,700 | 10,701,600 | 7,264,700 |
| Operating ROA | 4.31% | 7.82% | 7.21% | 7.45% | 9.55% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $484,200K ÷ $11,232,100K
= 4.31%
Operating Return on Assets (Operating ROA) is a critical financial metric that indicates the efficiency of Rockwell Automation Inc in generating operating profit relative to its total assets. The trend of Operating ROA for Rockwell Automation Inc over the past five years shows fluctuation.
In the fiscal year ending September 30, 2024, the Operating ROA of Rockwell Automation Inc stood at 4.31%, down from 7.82% in the previous year (2023). This represents a significant decline and suggests that the company's operating profitability relative to its assets weakened during this period.
Comparing the latest fiscal year to the prior years, the Operating ROA has shown a general downward trend since 2020 when it was at 9.55%. The decrease in Operating ROA may indicate challenges faced by the company in effectively utilizing its assets to generate operating profits or potential inefficiencies in its operations.
It is crucial for Rockwell Automation Inc to closely analyze the factors contributing to the decline in Operating ROA and take corrective actions to improve operational efficiency and profitability in the future. Monitoring and improving this ratio can help the company enhance its overall financial performance and create long-term value for its stakeholders.
Peer comparison
Sep 30, 2024