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Rockwell Automation (LTS:0KXA) Gross Margin % : 37.86% (As of Sep. 2024)


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What is Rockwell Automation Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rockwell Automation's Gross Profit for the three months ended in Sep. 2024 was $771 Mil. Rockwell Automation's Revenue for the three months ended in Sep. 2024 was $2,036 Mil. Therefore, Rockwell Automation's Gross Margin % for the quarter that ended in Sep. 2024 was 37.86%.

Warning Sign:

Rockwell Automation Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.


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

LTS:0KXA' s Gross Margin % Range Over the Past 10 Years
Min: 38.64   Med: 41.76   Max: 43.32
Current: 38.64


During the past 13 years, the highest Gross Margin % of Rockwell Automation was 43.32%. The lowest was 38.64%. And the median was 41.76%.

LTS:0KXA's Gross Margin % is ranked better than
77.64% of 2934 companies
in the Industrial Products industry
Industry Median: 26.73 vs LTS:0KXA: 38.64

Rockwell Automation had a gross margin of 37.86% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Rockwell Automation was -1.70% per year.


Rockwell Automation Gross Margin % Historical Data

The historical data trend for Rockwell Automation's Gross Margin % 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 Gross Margin % Chart

Rockwell Automation Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.00 41.41 39.97 41.04 38.64

Rockwell Automation Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % 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 41.18 38.72 39.20 38.76 37.86

Competitive Comparison of Rockwell Automation's Gross Margin %

For the Specialty Industrial Machinery subindustry, Rockwell Automation's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Industrial Products Industry

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

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



Rockwell Automation Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Rockwell Automation's Gross Margin for the fiscal year that ended in Sep. 2024 is calculated as

Gross Margin % (A: Sep. 2024 )=Gross Profit (A: Sep. 2024 ) / Revenue (A: Sep. 2024 )
=3193.4 / 8264.2
=(Revenue - Cost of Goods Sold) / Revenue
=(8264.2 - 5070.8) / 8264.2
=38.64 %

Rockwell Automation's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=770.6 / 2035.5
=(Revenue - Cost of Goods Sold) / Revenue
=(2035.5 - 1264.9) / 2035.5
=37.86 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Rockwell Automation  (LTS:0KXA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Rockwell Automation had a gross margin of 37.86% for the quarter that ended in Sep. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Rockwell Automation Gross Margin % Related Terms

Thank you for viewing the detailed overview of Rockwell Automation's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


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.

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