Rockwell Automation Inc (ROK)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,641,300 | 1,853,200 | 1,849,000 | 1,719,400 | 1,402,500 | 1,209,900 | 803,000 | 763,100 | 1,223,100 | 1,634,600 | 1,924,900 | 1,950,200 | 1,609,700 | 1,239,800 | 998,400 | 983,100 | 1,214,000 | 999,200 | 1,416,700 | 1,336,700 |
| Long-term debt | US$ in thousands | 2,863,000 | 2,862,900 | 2,866,900 | 2,868,100 | 2,866,900 | 2,867,800 | 3,464,100 | 3,466,000 | 3,469,100 | 3,464,600 | 1,977,100 | 1,978,400 | 1,980,300 | 1,974,700 | 1,974,400 | 1,970,200 | 1,953,000 | 1,956,400 | 1,941,100 | 1,932,400 |
| Total stockholders’ equity | US$ in thousands | 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 | 404,200 | 1,156,500 | 1,336,300 |
| Return on total capital | 25.37% | 28.85% | 29.77% | 28.54% | 24.26% | 21.63% | 13.71% | 12.51% | 20.47% | 27.92% | 45.33% | 51.38% | 45.50% | 41.29% | 36.37% | 37.94% | 45.47% | 42.33% | 45.74% | 40.89% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,641,300K ÷ ($2,863,000K + $3,607,700K)
= 25.37%
To analyze Rockwell Automation Inc's return on total capital, we will assess the trend and consistency of its performance over the past eight quarters. Return on total capital is a key financial metric that measures the company's ability to generate profits from its capital investments.
The return on total capital for Rockwell Automation Inc has shown a gradual upward trend from March 31, 2022, through Dec 31, 2023. This indicates an improvement in the company's efficiency in utilizing its total capital to generate returns for shareholders. The highest return on total capital was recorded in the quarter ending Sep 30, 2023, at 25.94%, demonstrating a strong performance in capital utilization.
It is noteworthy that the return on total capital has consistently remained above 20% since March 31, 2023, reflecting the company's sustained ability to generate significant returns relative to its overall capital base. This indicates strong profitability and efficient capital management.
Overall, Rockwell Automation Inc's return on total capital demonstrates a positive trend, indicating the company's effective utilization of its capital to generate returns for its investors. However, continuous monitoring of this metric will be important to ensure that the company's capital efficiency remains strong in the future.
Peer comparison
Dec 31, 2023