Rockwell Automation Inc (ROK)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,853,200 | 1,209,900 | 1,634,600 | 1,239,800 | 999,200 |
| Interest expense | US$ in thousands | 135,300 | 123,200 | 94,600 | 103,500 | 98,200 |
| Interest coverage | 13.70 | 9.82 | 17.28 | 11.98 | 10.18 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,853,200K ÷ $135,300K
= 13.70
The interest coverage ratio for Rockwell Automation Inc has shown a consistently strong performance in recent years. The ratio, which measures the company's ability to pay interest on its outstanding debt, was 13.48 in 2023, indicating that the company generated 13.48 times more operating income than the interest expenses for the year. This improvement from the previous year's ratio of 11.24 suggests enhanced financial stability and capacity to meet debt obligations. Furthermore, when compared to historical data, the company's interest coverage has remained relatively robust, although it experienced a slight decrease from 15.63 in 2019 to 13.48 in 2023. Overall, Rockwell Automation Inc's interest coverage portrays a favorable financial position and a solid ability to service its debt.
Peer comparison
Sep 30, 2023