RBC Bearings Incorporated (RBC)

Short-term

Turnover ratios

RBC Bearings Incorporated's activity ratios provide insights into how efficiently the company manages its resources.

1. Inventory Turnover: The inventory turnover ratio indicates how many times the company sells and replaces its inventory within a given period. RBC Bearings' inventory turnover has been relatively stable over the years, ranging from 1.03 to 1.47. An increasing trend in this ratio suggests that the company is selling its inventory more quickly, indicating efficient inventory management.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently the company is collecting payments from its customers. RBC Bearings' receivables turnover fluctuates between 3.81 and 6.13, indicating some variability in collecting receivables. A higher turnover ratio is generally favorable as it indicates quicker collection of accounts receivable.

3. Payables Turnover: The payables turnover ratio measures how efficiently the company pays its suppliers. RBC Bearings' payables turnover ranges from 3.69 to 10.32, showing variability in how quickly the company pays its suppliers. A higher turnover ratio indicates more frequent payment of accounts payable, which could signal strong supplier relationships or effective cash management.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently the company utilizes its working capital to generate sales. RBC Bearings' working capital turnover has shown an increasing trend from 0.95 to 2.30, suggesting improved efficiency in utilizing working capital over the years. A higher turnover ratio signifies better utilization of resources to generate revenue.

Overall, analyzing these activity ratios provides valuable insights into RBC Bearings' operational efficiency and effectiveness in managing its resources to drive business performance.

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Average number of days

RBC Bearings Incorporated's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes the company to sell its inventory. A decreasing trend in DOH from 354.55 days in March 2021 to 262.46 days in March 2025 suggests that RBC Bearings has been managing its inventory more efficiently over the years. Lower DOH values indicate faster inventory turnover, which can free up working capital and reduce carrying costs.

2. Days of Sales Outstanding (DSO): DSO measures how quickly the company collects payments from its customers. The DSO trend for RBC Bearings shows some fluctuations, with an increase from 66.21 days in March 2021 to 95.80 days in March 2022, followed by a decrease to 68.61 days in March 2025. Lower DSO values indicate more efficient credit management and faster cash conversion cycle, which is favorable for the company's liquidity and cash flow.

3. Number of Days of Payables: This ratio reflects the average number of days it takes the company to pay its suppliers. RBC Bearings' number of days of payables also fluctuated over the period, with a significant increase from 35.38 days in March 2021 to 98.81 days in March 2022, followed by a decrease to 55.50 days in March 2025. A lower number of days of payables indicates that the company is taking longer to settle its payables, potentially impacting its relationships with suppliers.

Overall, analyzing these activity ratios together can give a holistic view of RBC Bearings' operational efficiency and effectiveness in managing its working capital, inventory, receivables, and payables over the years. It is essential for the company to strike a balance in these ratios to optimize its cash flow, profitability, and relationships with customers and suppliers.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. RBC Bearings Incorporated's fixed asset turnover has shown a significant improvement over the years. In March 2021, the ratio was 0.22, indicating that the company generated $0.22 in sales for every dollar of fixed assets. By March 2023, this ratio had increased to 3.53, suggesting a substantial enhancement in the efficiency of utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how well a company is utilizing all its assets to generate revenue. RBC Bearings Incorporated's total asset turnover has fluctuated over the years but has generally shown a positive trend. In March 2021, the ratio was 0.42, meaning that the company generated $0.42 in sales for every dollar of total assets. While there was a decline to 0.19 in March 2022, the ratio has gradually improved, reaching 0.35 by March 2025.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates improved efficiency in asset utilization and revenue generation for RBC Bearings Incorporated. The company has been able to generate more sales per dollar of assets, which is a positive sign for its long-term operational efficiency and profitability.