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Rockwell Automation (FRA:RWL) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Sep. 2024)


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What is Rockwell Automation Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rockwell Automation's annualized net income for the quarter that ended in Sep. 2024 was €862 Mil. Rockwell Automation's average shareholder tangible equity for the quarter that ended in Sep. 2024 was €-1,506 Mil. Therefore, Rockwell Automation's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2024 was Negative Tangible Equity%.

The historical rank and industry rank for Rockwell Automation's Return-on-Tangible-Equity or its related term are showing as below:

FRA:RWL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 63.95   Med: 76.18   Max: 87.95
Current: Negative Tangible Equity

During the past 13 years, Rockwell Automation's highest Return-on-Tangible-Equity was 87.95%. The lowest was 63.95%. And the median was 76.18%.

FRA:RWL's Return-on-Tangible-Equity is ranked better than
99.97% of 2921 companies
in the Industrial Products industry
Industry Median: 7.06 vs FRA:RWL: Negative Tangible Equity

Rockwell Automation Return-on-Tangible-Equity Historical Data

The historical data trend for Rockwell Automation's Return-on-Tangible-Equity 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.

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Rockwell Automation Return-on-Tangible-Equity Chart

Rockwell Automation Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Rockwell Automation Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Return-on-Tangible-Equity 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 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of Rockwell Automation's Return-on-Tangible-Equity

For the Specialty Industrial Machinery subindustry, Rockwell Automation's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Rockwell Automation's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Rockwell Automation's Return-on-Tangible-Equity falls into.



Rockwell Automation Return-on-Tangible-Equity Calculation

Rockwell Automation's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2024 )  (A: Sep. 2023 )(A: Sep. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2024 )  (A: Sep. 2023 )(A: Sep. 2024 )
=858.203/( (-768.34+-1406.732 )/ 2 )
=858.203/-1087.536
=Negative Tangible Equity %

Rockwell Automation's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=861.716/( (-1605.684+-1406.732)/ 2 )
=861.716/-1506.208
=Negative Tangible Equity %

* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Rockwell Automation  (FRA:RWL) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Rockwell Automation Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Rockwell Automation's Return-on-Tangible-Equity 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.

Rockwell Automation Headlines

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