Rockwell Automation Inc (ROK)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 484,200 | 1,853,200 | 1,209,900 | 1,634,600 | 1,239,800 |
| Interest expense | US$ in thousands | 151,000 | 135,300 | 123,200 | 94,600 | 103,500 |
| Interest coverage | 3.21 | 13.70 | 9.82 | 17.28 | 11.98 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $484,200K ÷ $151,000K
= 3.21
Rockwell Automation Inc's interest coverage has shown fluctuations over the past five years. The interest coverage ratio indicates the company's ability to meet interest payments on its outstanding debt. A higher ratio is generally preferred as it suggests that the company can comfortably cover its interest expenses with its operating income.
In 2024, the interest coverage ratio was 3.21, showing a decline from the previous year. This lower ratio may indicate increased financial risk, as the company's operating income may not be as sufficient to cover its interest obligations.
Conversely, in 2023, the interest coverage ratio was significantly higher at 13.70, indicating a strong ability to cover interest payments. This improvement suggests better financial health and stability.
The ratios for 2022, 2021, and 2020 were 9.82, 17.28, and 11.98, respectively. These figures indicate varying levels of interest coverage over the years, with 2021 showing the highest coverage and 2020 showing a solid performance as well.
Overall, Rockwell Automation Inc's interest coverage has varied over the past five years, with fluctuations that may warrant further investigation into the factors influencing its financial position and debt obligations.
Peer comparison
Sep 30, 2024