Rockwell Automation Inc (ROK)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 633,200 | 1,315,900 | 1,599,200 | 1,641,300 | 1,853,200 | 1,849,000 | 1,719,400 | 1,402,500 | 1,209,900 | 803,000 | 763,100 | 1,223,100 | 1,634,600 | 1,924,900 | 1,950,200 | 1,609,700 | 1,239,800 | 998,400 | 983,100 | 1,214,000 |
| Interest expense (ttm) | US$ in thousands | 153,700 | 144,500 | 137,900 | 134,500 | 135,300 | 137,000 | 133,400 | 127,700 | 123,200 | 116,800 | 108,400 | 101,600 | 94,600 | 94,500 | 97,500 | 99,700 | 103,500 | 104,300 | 105,700 | 103,900 |
| Interest coverage | 4.12 | 9.11 | 11.60 | 12.20 | 13.70 | 13.50 | 12.89 | 10.98 | 9.82 | 6.88 | 7.04 | 12.04 | 17.28 | 20.37 | 20.00 | 16.15 | 11.98 | 9.57 | 9.30 | 11.68 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $633,200K ÷ $153,700K
= 4.12
Rockwell Automation Inc's interest coverage ratio demonstrates the company's ability to meet its interest payment obligations with its operating income. Over the past several quarters, the interest coverage ratio has displayed a generally upward trend, indicating improved financial health and efficiency in meeting interest expenses. The ratio has shown some fluctuations but has mostly remained at healthy levels, ranging from around 4.12 to 20.37.
A higher interest coverage ratio, such as the values seen in the more recent quarters, reflects a stronger ability to cover interest payments from operating income. This indicates that Rockwell Automation Inc has sufficient earnings to meet its interest expenses comfortably. However, it is important to monitor the ratio over time to ensure that the company can continue to generate enough income to cover its interest obligations, especially during economic downturns or periods of financial stress.
Peer comparison
Sep 30, 2024