Rockwell Automation Inc (ROK)
Return on equity (ROE)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 952,500 | 1,016,300 | 1,184,500 | 1,218,600 | 1,387,400 | 1,423,400 | 1,321,100 | 1,074,700 | 932,200 | 671,800 | 645,200 | 1,006,300 | 1,358,100 | 1,542,300 | 1,588,800 | 1,306,000 | 1,023,400 | 768,800 | 712,400 | 926,200 |
| Total stockholders’ equity | US$ in thousands | 3,498,300 | 3,325,700 | 3,543,600 | 3,607,700 | 3,561,600 | 3,343,200 | 3,155,500 | 2,914,800 | 2,725,600 | 2,391,200 | 2,632,200 | 2,504,900 | 2,389,600 | 2,269,600 | 1,817,200 | 1,557,600 | 1,027,800 | 770,500 | 620,800 | 717,000 |
| ROE | 27.23% | 30.56% | 33.43% | 33.78% | 38.95% | 42.58% | 41.87% | 36.87% | 34.20% | 28.09% | 24.51% | 40.17% | 56.83% | 67.95% | 87.43% | 83.85% | 99.57% | 99.78% | 114.76% | 129.18% |
September 30, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $952,500K ÷ $3,498,300K
= 27.23%
Rockwell Automation Inc's return on equity (ROE) has displayed a fluctuating trend over the past few quarters. The company's ROE was relatively stable around 20-30% until a significant increase in the last few quarters, peaking at over 100%. This suggests an improvement in the company's ability to generate profit from shareholders' equity.
ROE measures a company's efficiency in utilizing shareholders' equity to generate profit, and Rockwell Automation Inc's increasing ROE indicates effective management of its resources to enhance shareholder value. However, the substantial fluctuations in ROE should prompt a closer examination of the company's financial performance and operations during each period to identify the factors contributing to the changes.
It is essential to further investigate the reasons behind the surge in ROE in the recent quarters to assess whether it is sustainable or if there are any exceptional events impacting the metric. Additionally, comparing Rockwell Automation Inc's ROE with industry peers and historical averages can provide additional insights into its performance relative to the sector.
Overall, while Rockwell Automation Inc's ROE has shown positive momentum, a more in-depth analysis is recommended to understand the drivers behind the trend and evaluate the company's long-term profitability and sustainability.
Peer comparison
Sep 30, 2024