RBC Bearings Incorporated (RBC)

Short-term

Turnover ratios

RBC Bearings Incorporated's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory turnover:
- RBC Bearings' inventory turnover has fluctuated over the past five years, ranging from 1.03 to 1.47, with a current ratio of 1.43 as of March 31, 2024. This suggests that the company takes approximately 1.43 years to sell and replace its inventory.
- A declining trend in inventory turnover could indicate overstocking or slowing sales, while an increasing trend could imply efficient inventory management.

2. Receivables turnover:
- The receivables turnover ratio for RBC Bearings has also varied over the years, with a current ratio of 6.11, indicating that the company collected its receivables approximately 6.11 times during the year ending March 31, 2024.
- A higher receivables turnover ratio suggests effective management of credit sales and collection processes.

3. Payables turnover:
- RBC Bearings' payables turnover has shown fluctuations, with the current ratio at 7.66 as of March 31, 2024. This implies that the company paid its suppliers approximately 7.66 times during the year.
- A higher payables turnover ratio may signify more frequent payments to suppliers, while a lower ratio could imply favorable credit terms or delayed payments.

4. Working capital turnover:
- The working capital turnover ratio measures how effectively a company generates revenue from its working capital, with RBC Bearings recording a ratio of 2.32 as of March 31, 2024.
- A higher working capital turnover ratio indicates efficient utilization of working capital to generate sales, while a lower ratio may suggest inefficiencies in capital management.

Overall, monitoring these activity ratios can help assess RBC Bearings' operational efficiency, inventory management, credit policies, and working capital utilization over time. Comparing these ratios to industry benchmarks or historical trends can provide valuable insights into the company's performance and potential areas for improvement.

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Average number of days

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

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days it takes for the company to sell its inventory. RBC Bearings has shown a fluctuating trend in this ratio over the past five years, ranging from 247.92 days to 354.53 days. A lower number of days indicates that the company is efficiently managing its inventory, while a higher number suggests a potential issue with excess inventory or slow sales.

2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects the average number of days it takes for the company to collect payment after making a sale. RBC Bearings has maintained relatively stable DSO levels over the years, with a range of 59.52 days to 95.80 days. A lower DSO indicates efficient collection practices, while a higher DSO may signal challenges in recovering receivables or extending credit terms.

3. Number of Days of Payables:
- This ratio measures how many days the company takes to pay its suppliers. RBC Bearings has shown fluctuations in this ratio, ranging from 35.38 days to 98.82 days. A higher number of days of payables could indicate that the company is effectively managing its cash flow by delaying payments, but it may also strain supplier relationships if extended for too long.

In summary, RBC Bearings' activity ratios suggest mixed efficiency levels in managing inventory, collecting receivables, and paying suppliers over the past five years. Further analysis and comparison with industry benchmarks can provide a clearer understanding of the company's operational performance and areas for improvement.

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Long-term

The fixed asset turnover ratio for RBC Bearings Incorporated has shown a general increasing trend from 2.44 in 2022 to 4.32 in 2024. This indicates that the company is generating more sales relative to its investment in fixed assets over the years, suggesting improved efficiency in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has fluctuated over the years, with a decrease from 0.55 in 2020 to 0.33 in 2024. This indicates that the company's ability to generate sales from its total assets has been somewhat inconsistent, potentially signaling challenges in effectively utilizing its total asset base to generate revenue.

Overall, while the fixed asset turnover ratio portrays a positive trend in efficiency in utilizing fixed assets, the fluctuation in the total asset turnover ratio suggests a need for RBC Bearings to focus on optimizing its overall asset utilization to enhance overall operational efficiency and profitability.