Is Rockwell Automation's financial condition healthy?
4/17/2025 07:00pm
**Rockwell Automation's financial condition appears to be healthy**, as evidenced by several key financial metrics and strategic initiatives:
1. **Strong Liquidity**: The company's current ratio stands at 107.83%, which is significantly above the threshold of 1, indicating excellent short-term liquidity. This is a positive sign, suggesting that Rockwell Automation has ample resources to meet its short-term obligations.
2. **Efficient Asset Utilization**: With an asset turnover ratio of 0.17, Rockwell Automation is effectively utilizing its assets to generate revenue. This efficiency is a good indicator of the company's ability to convert its assets into sales.
3. **Moderate Leverage**: The debt-to-equity ratio of 1.02% suggests that the company has a low level of debt relative to its equity. This indicates a conservative capital structure, which can be beneficial during economic downturns.
|code|Ticker|Name|Date|Asset Turnover Ratio|Debt-to-Equity Ratio|Current Ratio|Quick Ratio|market_code|
|---|---|---|---|---|---|---|---|---|
|ROK|ROK.N|Rockwell Automation|20240630|0.18730782446278954|0.9863782912412682|1.111|0.7371|169|
|ROK|ROK.N|Rockwell Automation|20240930|0.1818238243652437|1.0514928355311983|1.0352|0.6773|169|
|ROK|ROK.N|Rockwell Automation|20241231||0.990204081632653|1.0769|0.7181|169|
|ROK|ROK.N|Rockwell Automation|20250331|0.16964285714285715|1.0160292463442069|1.0783|0.7232|169|
4. **Robust Profitability**: The company's return on equity (ROE) is 5.35%, and the return on assets (ROA) is 2.27%. These figures, while not exceptionally high, are indicative of a profitable business model.
5. **Stable Cash Flow**: Rockwell Automation has a positive free cash flow of $293 million, which is a crucial indicator of the company's ability to generate cash after capital expenditures. This is a good sign, as negative free cash flow can signal issues with cash flow management.
|code|Ticker|Name|Date|ROA|ROE(Average)|market_code|
|---|---|---|---|---|---|---|
|ROK|ROK.N|Rockwell Automation|2024 Q2|5.668|13.5506|169|
|ROK|ROK.N|Rockwell Automation|2024 Q3|8.345|20.7164|169|
|ROK|ROK.N|Rockwell Automation|2024 Q4|11.1261|26.9834|169|
|ROK|ROK.N|Rockwell Automation|2025 Q1|2.2727|5.3465|169|
|code|Ticker|Name|Date|Diluted EPS|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|ROK|ROK.N|Rockwell Automation|2024 Q2|2.31|11.4406|169|
|ROK|ROK.N|Rockwell Automation|2024 Q3|2.02|11.3844|169|
|ROK|ROK.N|Rockwell Automation|2024 Q4||11.4627|169|
|ROK|ROK.N|Rockwell Automation|2025 Q1|1.61|9.4631|169|
6. **Dividend Commitment**: The company has a history of consistently paying dividends, with a recent declaration of a quarterly dividend of $1.31 per share. This commitment to returning capital to shareholders is a positive reflection of financial stability.
7. **Strategic Partnerships**: The partnership with Amazon Web Services (AWS) is a strategic move that is likely to enhance Rockwell Automation's market position and increase its software-as-a-service offerings. Such partnerships can be a sign of a company's ability to adapt to industry trends and capitalize on new opportunities.
In conclusion, Rockwell Automation's financial condition is healthy, with strong liquidity, efficient asset utilization, moderate leverage, robust profitability, stable cash flow, and a commitment to shareholders through dividends, all of which are supported by strategic initiatives.