Rockwell Automation Inc (ROK)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,333,300 | 11,304,000 | 11,743,300 | 11,469,100 | 11,149,800 | 10,758,700 | 10,799,900 | 10,715,500 | 10,743,300 | 10,701,600 | 8,573,100 | 8,317,700 | 8,171,000 | 7,264,700 | 7,329,500 | 6,665,900 | 7,107,900 | 6,113,000 | 6,158,800 | 6,254,200 |
| 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 |
| Financial leverage ratio | 3.14 | 3.17 | 3.51 | 3.63 | 3.83 | 3.95 | 4.52 | 4.07 | 4.29 | 4.48 | 3.78 | 4.58 | 5.25 | 7.07 | 9.51 | 10.74 | 9.91 | 15.12 | 5.33 | 4.68 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,333,300K ÷ $3,607,700K
= 3.14
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a greater reliance on debt, which can amplify returns but also increase financial risk.
Looking at the financial leverage ratio of Rockwell Automation Inc over the past eight quarters, we observe a fluctuating trend. The ratio has been on an upward trajectory from 3.14 in December 2023 to 4.52 in June 2022, signifying an increase in the company's reliance on debt to fund its activities during this period.
This trend suggests that Rockwell Automation Inc has been increasingly financing its operations and expansion through borrowing, which could potentially lead to higher interest payments and financial risk. It is important to monitor this trend closely to assess the company's ability to manage its debt and ensure sustainable financial health.
Peer comparison
Dec 31, 2023