Rockwell Automation Inc (ROK)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 484,200 | 1,853,200 | 1,209,900 | 1,634,600 | 1,239,800 |
| Long-term debt | US$ in thousands | 2,561,300 | 2,862,900 | 2,867,800 | 3,464,600 | 1,974,700 |
| Total stockholders’ equity | US$ in thousands | 3,498,300 | 3,561,600 | 2,725,600 | 2,389,600 | 1,027,800 |
| Return on total capital | 7.99% | 28.85% | 21.63% | 27.92% | 41.29% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $484,200K ÷ ($2,561,300K + $3,498,300K)
= 7.99%
Rockwell Automation Inc's return on total capital has exhibited fluctuations over the past five years. In September 2024, the return on total capital was 7.99%, representing a decline from the previous year's figure of 28.85%. This decrease suggests a reduced efficiency in generating profits from the total capital employed by the company.
The substantial variability in the return on total capital over the years may indicate changes in the company's profitability and capital utilization. The downward trend from 2020 to 2024 raises concerns about the company's ability to achieve returns for its investors and creditors. Analyzing the reasons behind such fluctuations and implementing strategies to improve capital efficiency could be crucial for Rockwell Automation Inc's sustainable growth and profitability in the long run.
Peer comparison
Sep 30, 2024