Rockwell Automation Inc (ROK)

Solvency ratios

	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
Debt-to-assets ratio	0.25	0.25	0.24	0.25	0.26	0.27	0.32	0.32	0.32	0.32	0.23	0.24	0.24	0.27	0.27	0.30	0.27	0.32	0.32	0.31
Debt-to-capital ratio	0.44	0.45	0.46	0.48	0.50	0.51	0.59	0.57	0.58	0.59	0.47	0.52	0.56	0.66	0.72	0.76	0.73	0.83	0.63	0.59
Debt-to-equity ratio	0.79	0.80	0.86	0.91	0.98	1.05	1.45	1.32	1.38	1.45	0.87	1.09	1.27	1.92	2.56	3.17	2.72	4.84	1.68	1.45
Financial leverage ratio	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	15.12	5.33	4.68

The solvency ratios of Rockwell Automation Inc indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing. The debt-to-assets ratio, which measures the proportion of total assets financed by debt, has shown variability but remained relatively stable over the period, ranging between 0.26 and 0.38. This suggests that the company has been able to effectively manage its debt in relation to its total assets.

The debt-to-capital ratio, which reflects the proportion of the company's capital that is financed through debt, has also exhibited fluctuation but has generally trended upwards, reaching 0.53 to 0.63. This indicates a slightly higher reliance on debt for financing capital expenditures in the latter part of the period.

The debt-to-equity ratio, representing the degree of leverage used by the company, has demonstrated an increasing trend, rising from 0.83 to 1.70 over the period, signaling a higher level of financial risk and leverage.

The financial leverage ratio, which measures the extent of a company's asset base in relation to its equity, has also shown an increasing trend, indicating a growth in financial leverage and potential vulnerability to economic downturns or adverse market conditions.

Overall, the company's solvency ratios suggest a moderate level of reliance on debt for financing, with an increasing trend in leverage and debt dependency. It is important for stakeholders to closely monitor these ratios to assess the company's long-term financial stability and risk management strategies.

Coverage ratios

	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
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

Interest coverage is an important financial ratio that provides insight into a company's ability to meet its interest payment obligations. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. The table provides the interest coverage ratio for Rockwell Automation Inc over the past eight quarters.

The interest coverage ratio for Rockwell Automation Inc has shown a generally increasing trend over the past two years, with slight fluctuations in recent quarters. The ratio has consistently remained above 10, indicating that the company has generated more than enough earnings to cover its interest expenses. This demonstrates a healthy ability to meet interest payment obligations and implies a lower risk of default on its debt.

The upward trend in the interest coverage ratio reflects the company's improving profitability and/or decreasing interest expenses, which are positive indicators for investors and creditors. However, it is important to continue monitoring this ratio to ensure the company maintains its ability to comfortably cover its interest payments in the future.