Rockwell Automation Inc (ROK)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,387,400 | 932,200 | 1,358,100 | 1,023,400 | 695,800 |
| Total assets | US$ in thousands | 11,304,000 | 10,758,700 | 10,701,600 | 7,264,700 | 6,113,000 |
| ROA | 12.27% | 8.66% | 12.69% | 14.09% | 11.38% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $1,387,400K ÷ $11,304,000K
= 12.27%
Rockwell Automation Inc's return on assets (ROA) can provide valuable insights into the company's efficiency at utilizing its assets to generate profits. ROA is calculated by dividing net income by average total assets and is expressed as a percentage. A higher ROA indicates that the company is generating more income from its assets.
Analyzing Rockwell Automation Inc's ROA over the past five years, there are fluctuations in the ratio. In 2023, the ROA stands at 12.22%, showing an improvement from the previous year. This indicates that the company generated 12.22 cents of profit for every dollar of assets. The increase in ROA from 2022 to 2023 suggests that the company has become more proficient in utilizing its assets to generate profits.
Furthermore, in 2021, the ROA was 12.67%, which is relatively strong and signifies that the company was able to generate 12.67 cents of profit for every dollar of assets during that period. The decrease in 2022 compared to 2021 may indicate that the company either experienced a decrease in net income or an increase in average total assets.
In 2020, the ROA decreased to 14.07%, which indicates that the company generated 14.07 cents of profit for every dollar of assets. This was a decline from the previous year and may imply that the company experienced challenges in generating income from its assets or had increased average total assets.
Similarly, in 2019, the ROA was 11.37%, which is lower than in 2020. This decrease might be attributed to a decrease in net income or an increase in average total assets compared to the previous year.
Overall, the fluctuation in Rockwell Automation Inc's ROA over the past five years suggests that the company's ability to generate profits from its assets has varied. It is important to further investigate the factors behind these fluctuations, such as changes in net income, asset utilization, or asset composition, to gain a comprehensive understanding of the company's performance.
Peer comparison
Sep 30, 2023