Rockwell Automation Inc (ROK)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,862,900 | 2,867,800 | 3,464,600 | 1,974,700 | 1,956,400 |
| Total assets | US$ in thousands | 11,304,000 | 10,758,700 | 10,701,600 | 7,264,700 | 6,113,000 |
| Debt-to-assets ratio | 0.25 | 0.27 | 0.32 | 0.27 | 0.32 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,862,900K ÷ $11,304,000K
= 0.25
The debt-to-assets ratio is a financial metric that indicates the proportion of a company's assets that are financed through debt. A lower debt-to-assets ratio typically suggests a lower financial risk, as it implies that the company relies less on debt to fund its operations and investments. Here's a detailed analysis of Rockwell Automation Inc's debt-to-assets ratio over the past five years:
1. September 30, 2023: The debt-to-assets ratio improved significantly to 0.26 from 0.36 in the previous year. This indicates that Rockwell Automation Inc reduced its reliance on debt financing relative to its total assets, reflecting a stronger financial position compared to the prior year.
2. September 30, 2022: The debt-to-assets ratio decreased slightly to 0.36 from 0.37 in 2021. While the decrease is modest, it still suggests a positive trend towards lower leverage and potentially reduced financial risk.
3. September 30, 2021: The debt-to-assets ratio was at 0.37, which is consistent with the ratio in 2019. Although there were no significant improvements, the ratio remained relatively stable, indicating that Rockwell Automation Inc maintained a consistent balance between debt and assets during this period.
4. September 30, 2020: The debt-to-assets ratio decreased to 0.28 from 0.37 in 2019. This reduction suggests that the company reduced its reliance on debt financing, potentially improving its financial stability and creditworthiness.
5. September 30, 2019: The debt-to-assets ratio was at 0.37, indicating that Rockwell Automation Inc relied on debt to finance approximately 37% of its total assets at that time.
Overall, the trend in Rockwell Automation Inc's debt-to-assets ratio demonstrates a positive pattern of decreasing reliance on debt financing relative to its total assets, which can signify improved financial stability and reduced risk. This trend may be indicative of effective financial management and strategic decision-making within the company.
Peer comparison
Sep 30, 2023