Rockwell Automation Inc (ROK)
Debt-to-equity ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.73 | 0.80 | 1.05 | 1.45 | 1.92 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,561,300K ÷ $3,498,300K
= 0.73
The debt-to-equity ratio for Rockwell Automation Inc has shown a declining trend over the past five years, indicating an improvement in the company's leverage position.
In 2020, the company had a relatively high debt-to-equity ratio of 1.92, which suggests that the company had significant financial leverage primarily funded by debt. However, in subsequent years, the ratio decreased significantly to 1.45 in 2021, 1.05 in 2022, further declining to 0.80 in 2023 and 0.73 in 2024.
A lower debt-to-equity ratio implies that the company is relying less on debt financing compared to equity financing, which can be viewed positively by investors and creditors. This decreasing trend indicates that the company is making efforts to reduce its debt levels and strengthen its financial position. It also suggests that Rockwell Automation Inc may be managing its debt more effectively, leading to a reduced financial risk and improved stability in the long term.
Overall, the decreasing trend in the debt-to-equity ratio for Rockwell Automation Inc is a positive indicator of the company's financial health and prudent management of its capital structure.
Peer comparison
Sep 30, 2024