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ROK (Rockwell Automation) ROA % : 8.23% (As of Jun. 2024)


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What is Rockwell Automation ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Rockwell Automation's annualized Net Income for the quarter that ended in Jun. 2024 was $928 Mil. Rockwell Automation's average Total Assets over the quarter that ended in Jun. 2024 was $11,278 Mil. Therefore, Rockwell Automation's annualized ROA % for the quarter that ended in Jun. 2024 was 8.23%.

The historical rank and industry rank for Rockwell Automation's ROA % or its related term are showing as below:

ROK' s ROA % Range Over the Past 10 Years
Min: 7.96   Med: 11.59   Max: 15.3
Current: 7.96

During the past 13 years, Rockwell Automation's highest ROA % was 15.30%. The lowest was 7.96%. And the median was 11.59%.

ROK's ROA % is ranked better than
79.08% of 3021 companies
in the Industrial Products industry
Industry Median: 3.48 vs ROK: 7.96

Rockwell Automation ROA % Historical Data

The historical data trend for Rockwell Automation's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Rockwell Automation ROA % Chart

Rockwell Automation Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.25 15.30 14.96 8.57 11.59

Rockwell Automation Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.79 6.72 7.61 9.38 8.23

Competitive Comparison of Rockwell Automation's ROA %

For the Specialty Industrial Machinery subindustry, Rockwell Automation's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rockwell Automation's ROA % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Rockwell Automation's ROA % distribution charts can be found below:

* The bar in red indicates where Rockwell Automation's ROA % falls into.



Rockwell Automation ROA % Calculation

Rockwell Automation's annualized ROA % for the fiscal year that ended in Sep. 2023 is calculated as:

ROA %=Net Income (A: Sep. 2023 )/( (Total Assets (A: Sep. 2022 )+Total Assets (A: Sep. 2023 ))/ count )
=1278/( (10758.7+11304)/ 2 )
=1278/11031.35
=11.59 %

Rockwell Automation's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Mar. 2024 )+Total Assets (Q: Jun. 2024 ))/ count )
=928/( (11367.3+11188.6)/ 2 )
=928/11277.95
=8.23 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2024) net income data. ROA % is displayed in the 30-year financial page.


Rockwell Automation  (NYSE:ROK) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2024 )
=Net Income/Total Assets
=928/11277.95
=(Net Income / Revenue)*(Revenue / Total Assets)
=(928 / 8202.4)*(8202.4 / 11277.95)
=Net Margin %*Asset Turnover
=11.31 %*0.7273
=8.23 %

Note: The Net Income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Rockwell Automation ROA % Related Terms

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Rockwell Automation Business Description

Address
1201 South Second Street, Milwaukee, WI, USA, 53204
With roots tracing back to the early 1900s, Rockwell Automation is the successor to Rockwell International, which spun off its avionics segment in 2001. It is a pure-play industrial automation company that operates through three segments. Its largest segment by revenue, intelligent devices, sells factory floor-level devices such as motors, drives, sensors, relays, and actuators. Its software & control segment sells visualization, simulation, and human-machine interface software and control products such as programmable controllers, computers, and operator terminals. Its smallest segment, lifecycle services, offers digital consulting, engineered-to-order services, and other outsourced services such as remote monitoring, cybersecurity, and asset and plant maintenance and optimization.
Executives
Tessa M. Myers officer: SVP, Intelligent Devices 4545 W BROWN DEER ROAD, P.O. BOX 245036, MILWAUKEE WI 53224
Matthew W. Fordenwalt officer: SVP Lifecycle Services 1201 S. 2ND STREET, MILWAUKEE WI 53204
Christopher Nardecchia officer: SVP, Chief Information Officer 1201 S. 2ND STREET, MILWAUKEE WI 53204
Isaac Woods officer: Vice President and Treasurer 1201 S 2ND STREET, MILWAUKEE WI 53204
Robert L. Buttermore officer: SVP,Chief Supply Chain Officer 1201 S. 2ND STREET, MILWAUKEE WI 53204
Cyril Perducat officer: SVP, Technology 1201 S. 2ND STREET, MILWAUKEE WI 53204
John M Miller officer: VP and Chief IP Counsel C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Nicholas C Gangestad officer: Sr. VP and CFO 3M CENTER-OFFICE OF GENERAL COUNSEL, ST. PAUL MN 55144-1000
Scott Genereux officer: Sr.VP, Chief Revenue Officer 26650 ALISO VIEJO PARKWAY, ALISO VIEJO CA 92656
Rebecca W House officer: SVP, CLO and Secretary 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Blake D. Moret director, officer: President and CEO C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Brian A Shepherd officer: Sr. VP Software and Control 1201 S 2ND STREET, MILWAUKEE WI 53204
Frank C Kulaszewicz officer: SVP C/O ROCKWELL AUTOMATION, INC., 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Veena M Lakkundi officer: SVP, Strategy & Corp Developmt 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Terry L. Riesterer officer: Vice President and Controller 1201 S. 2ND STREET, MILWAUKEE WI 53204