Rockwell Automation Inc (ROK)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 999,200 | 1,416,700 | 1,336,700 |
| Interest expense (ttm) | US$ in thousands | 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 | 98,200 | 90,400 | 80,100 |
| Interest coverage | 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 | 10.18 | 15.67 | 16.69 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,641,300K ÷ $134,500K
= 12.20
The interest coverage ratio measures a company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT). A higher ratio indicates a greater ability to cover interest expenses.
Based on the provided data, Rockwell Automation Inc's interest coverage has been consistently strong over the past eight quarters, with ratios ranging from 10.20 to 13.48. This indicates the company's robust ability to cover its interest expenses with its operating earnings. The increasing trend in the interest coverage ratio from 10.20 in Q2 2022 to 13.48 in Q3 2023 reflects an improving ability to meet its interest obligations.
The company's strong interest coverage suggests that it has sufficient earnings to service its debt and may have a lower risk of default. However, it is important to consider other factors such as the overall debt levels and the stability of the company's earnings when evaluating its financial health.
Peer comparison
Dec 31, 2023