Rockwell Automation Inc (ROK)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.44 | 0.45 | 0.46 | 0.48 | 0.50 | 0.51 | 0.59 | 0.57 | 0.58 | 0.59 | 0.47 | 0.52 | 0.56 | 0.66 | 0.72 | 0.76 | 0.73 | 0.83 | 0.63 | 0.59 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,863,000K ÷ ($2,863,000K + $3,607,700K)
= 0.44
The debt-to-capital ratio of Rockwell Automation Inc has fluctuated over the past several quarters. As of December 31, 2023, the ratio stands at 0.48, indicating that debt accounts for 48% of the company's total capital. This represents a slight decrease from the previous quarter's ratio of 0.45.
The trend over the past year shows some volatility, with the ratio reaching its peak at 0.63 in the second quarter of 2022 and then declining to 0.48 by the end of 2023. The decreasing trend from the high in the second quarter of 2022 to the end of 2023 suggests that the company has been working to reduce its reliance on debt in its capital structure.
It is important to note that a lower debt-to-capital ratio generally signifies lower financial risk and greater financial stability. However, it's crucial to consider the reasons behind the fluctuations and assess the company's overall financial health and ability to manage its debt levels.
Peer comparison
Dec 31, 2023