Rockwell Automation Inc (ROK)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,232,100 | 11,188,600 | 11,367,300 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,498,300 | 3,325,700 | 3,543,600 | 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 |
| Financial leverage ratio | 3.21 | 3.36 | 3.21 | 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 |
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 exhibited fluctuations over the past years, reflecting changes in the company's capital structure. The ratio indicates the extent to which the company relies on debt to finance its operations and investments. Starting from December 2019 to June 2020, there was a notable upward trend in the financial leverage ratio, reaching its peak at 10.74 in March 2020, indicating a significant reliance on debt during that period.
Subsequently, there was a gradual decline in the ratio through 2020 and 2021, possibly indicating a reduction in the company's debt levels or an increase in equity. However, the ratio saw an upward trend again in 2022, peaking at 4.52 in June 2022, before showing some fluctuations in the following quarters.
The ratio has been relatively high in recent years, exceeding 3.0 consistently which signifies a higher proportion of debt in the company's capital structure compared to equity. It is essential for investors and stakeholders to monitor this ratio closely, as high leverage ratios can indicate higher financial risk and potential instability in the company's financial position.
Peer comparison
Sep 30, 2024