Rockwell Automation Inc (ROK)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,232,100 | 11,304,000 | 10,758,700 | 10,701,600 | 7,264,700 |
| Total stockholders’ equity | US$ in thousands | 3,498,300 | 3,561,600 | 2,725,600 | 2,389,600 | 1,027,800 |
| Financial leverage ratio | 3.21 | 3.17 | 3.95 | 4.48 | 7.07 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,232,100K ÷ $3,498,300K
= 3.21
The financial leverage ratio of Rockwell Automation Inc has fluctuated over the past five years. The ratio was highest in 2020 at 7.07, indicating that the company relied heavily on debt to finance its operations. Subsequently, there was a decreasing trend in the financial leverage ratio, reaching its lowest point in 2023 at 3.17.
In 2024, the financial leverage ratio slightly increased to 3.21, indicating a moderate level of leverage. This suggests that the company's reliance on debt to fund its assets has been reduced compared to previous years but still remains above the 3.0 threshold, implying that a significant portion of the company's assets are funded by debt.
Overall, the trend in the financial leverage ratio shows that Rockwell Automation Inc has been managing its debt levels more effectively in recent years, potentially reducing financial risk and improving its financial stability.
Peer comparison
Sep 30, 2024