Rockwell Automation Inc (ROK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.23 | 0.23 | 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 |
| Debt-to-capital ratio | 0.42 | 0.43 | 0.42 | 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 |
| Debt-to-equity ratio | 0.73 | 0.77 | 0.73 | 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 |
| Financial leverage ratio | 3.21 | 3.36 | 3.21 | 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 |
Rockwell Automation Inc's solvency ratios have displayed certain trends over the past several quarters. The debt-to-assets ratio has remained relatively stable around 0.23 to 0.27, indicating that the company has maintained a conservative level of debt in relation to its total assets.
However, the debt-to-capital ratio and debt-to-equity ratio have shown an increasing trend over the same period. The debt-to-capital ratio has risen from 0.42 to 0.76, while the debt-to-equity ratio increased from 0.73 to 3.17. These ratios suggest a higher level of financial risk as a larger portion of the company's capital structure is financed by debt.
Moreover, the financial leverage ratio has also experienced a significant increase from 3.21 to 10.74 over the same time frame. This indicates that the company's debt obligations have become a more considerable portion of its overall financial structure, which could potentially increase the company's financial risk and impact its ability to meet its debt obligations in the long term.
In conclusion, while Rockwell Automation Inc has maintained a stable debt-to-assets ratio, the increasing trend in the debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio suggests a rising level of financial risk and leverage that investors and stakeholders should closely monitor.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Rockwell Automation Inc has shown varying levels of interest coverage over the past few years, as indicated by the data in the table. The interest coverage ratio reflects the company's ability to meet its interest obligations using its operating income. A higher interest coverage ratio implies a stronger ability to pay interest expenses.
Looking at the trend, the interest coverage ratio has generally been healthy and above 5, which is considered a minimum acceptable level indicating that the company is generating sufficient earnings to cover its interest expenses.
In recent quarters, Rockwell Automation Inc has demonstrated strong interest coverage ratios, with particularly strong figures in Mar 31, 2021, with a ratio of 20.37, Dec 31, 2020, with a ratio of 16.15, Sep 30, 2020, with a ratio of 11.98, and Jun 30, 2020, with a ratio of 9.57. These numbers indicate the company's ability to comfortably meet its interest obligations, potentially reflecting solid operational performance during these periods.
However, it is noted that the interest coverage ratio has fluctuated over the years, with some quarters showing lower ratios such as in Mar 31, 2022, and Jun 30, 2022, indicating that the company's ability to cover interest expenses was temporarily reduced during these periods.
Overall, Rockwell Automation Inc's interest coverage ratio suggests that the company has generally been able to manage its interest payments effectively, but investors and analysts should continue to monitor this ratio to ensure the company's ongoing financial health and stability.