Rockwell Automation Inc (ROK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,561,600 | 2,725,600 | 2,389,600 | 1,027,800 | 404,200 |
| ROE | 38.95% | 34.20% | 56.83% | 99.57% | 172.14% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,387,400K ÷ $3,561,600K
= 38.95%
To analyze Rockwell Automation Inc's return on equity (ROE) over the past five years, the following observations can be made:
1. ROE Trend: There has been a declining trend in ROE over the last five years, dropping from 171.97% in 2019 to 38.79% in 2023. This declining trend indicates a decrease in the company's ability to generate profits from its shareholders' equity.
2. Industry Comparison: Comparing the ROE to industry averages and competitors' ROE would provide further insights into the company's performance and competitiveness within the industry.
3. Factors Driving ROE: Examining the factors influencing the ROE, such as profit margins, asset turnover, and financial leverage, could reveal the drivers behind the declining trend and aid in identifying areas requiring improvement.
4. Shareholder Expectations: The declining ROE trend may impact shareholder expectations and confidence in the company's ability to generate returns on their investment. Timely communication and strategic plans to address the decreasing trend may be crucial in managing shareholders' expectations.
Overall, Rockwell Automation Inc's declining ROE trend over the past five years suggests the need for a comprehensive assessment of its operational efficiency, profitability, and capital structure to identify and address factors contributing to the diminishing return on equity.
Peer comparison
Sep 30, 2023