RBC Bearings Incorporated (RBC)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Inventory turnover 1.39 1.40 1.44 1.49 1.54 1.49 1.48 1.47 1.50 1.52 1.51 1.34 1.14 0.91 1.02 1.00 1.03 1.04 1.08 1.14
Receivables turnover 5.32 6.30 6.23 6.01 5.95 6.71 6.06 5.97 6.13 6.68 5.70 4.76 3.81 3.73 5.68 5.55 5.51 5.96 6.16 6.20
Payables turnover 6.58 7.06 7.32 7.42 8.26 7.56 6.95 6.35 6.01 6.40 5.66 4.47 3.69 3.29 7.96 7.78 10.32 9.67 10.16 8.17
Working capital turnover 2.30 2.27 2.19 2.38 2.32 2.31 2.34 2.43 2.43 2.32 2.23 1.95 1.45 1.16 0.36 0.35 0.95 1.05 1.16 1.30

Inventory Turnover:
- RBC Bearings' inventory turnover ratio has been stable over the analyzed periods.
- The ratio has shown a slight improvement from 1.14 at June 30, 2020, to 1.39 at March 31, 2025.
- Generally, a higher inventory turnover ratio indicates efficient inventory management.

Receivables Turnover:
- RBC Bearings' receivables turnover ratio fluctuated during the period analyzed.
- The ratio decreased significantly from 6.20 at June 30, 2020, to 3.73 at December 31, 2021, before recovering and stabilizing around 6.00.
- A higher receivables turnover ratio implies effective management of credit sales and collection.

Payables Turnover:
- The payables turnover ratio for RBC Bearings showed fluctuations but remained relatively stable.
- The ratio decreased from 8.17 at June 30, 2020, to 3.29 at December 31, 2021, before gradually increasing to 6.58 at March 31, 2025.
- A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Working Capital Turnover:
- RBC Bearings' working capital turnover ratio exhibited an increasing trend over the analyzed period.
- The ratio improved from 1.30 at June 30, 2020, to 2.30 at March 31, 2025, indicating efficient utilization of working capital.
- A higher working capital turnover ratio shows that the company is generating more sales revenue per dollar of working capital invested.

In conclusion, RBC Bearings shows stable inventory turnover, fluctuating but stabilizing receivables turnover, relatively stable payables turnover, and an increasing trend in working capital turnover, suggesting effective management of key operating assets.

Average number of days

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Days of inventory on hand (DOH) days 262.46 260.93 253.00 245.06 236.74 245.72 247.44 247.87 243.02 240.87 241.42 273.40 321.56 402.80 357.08 365.47 354.55 351.58 337.06 319.83
Days of sales outstanding (DSO) days 68.61 57.98 58.56 60.71 61.31 54.43 60.25 61.18 59.52 54.61 63.99 76.74 95.80 97.97 64.21 65.75 66.21 61.27 59.26 58.91
Number of days of payables days 55.50 51.68 49.84 49.20 44.17 48.28 52.55 57.52 60.76 57.01 64.43 81.62 98.81 110.83 45.84 46.92 35.38 37.73 35.92 44.67

RBC Bearings Incorporated's activity ratios exhibit fluctuations over the analyzed periods.

1. Days of Inventory on Hand (DOH): The company's efficiency in managing inventory improved from December 31, 2022, to March 31, 2023, with DOH decreasing significantly. There was a slight increase by September 30, 2023, but it remained fairly stable until December 31, 2024. However, there was a notable decrease in DOH by June 30, 2025, indicating better inventory management efficiency.

2. Days of Sales Outstanding (DSO): RBC Bearings saw fluctuations in DSO over the periods, with a significant increase from September 30, 2022, to December 31, 2022. This was followed by a decrease by March 31, 2023. There was another increase by June 30, 2024, but DSO showed a decrease by December 31, 2024, before increasing again by March 31, 2025.

3. Number of Days of Payables: The company's payables management also experienced variations. There was an increase from December 31, 2021, to March 31, 2022, followed by a fluctuating pattern until December 31, 2023. The number of days of payables decreased steadily by March 31, 2024, but increased again by December 31, 2024, and continued to rise by March 31, 2025.

Overall, these activity ratios reflect RBC Bearings' changing efficiency levels in managing inventory, receivables, and payables over the analyzed periods. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's operational performance and financial health accurately.

Long-term

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Fixed asset turnover — — — — — — 3.71 3.64 3.53 3.43 3.20 2.66 2.19 1.70 2.63 0.23 0.99 0.23 1.07 1.11
Total asset turnover 0.35 0.35 0.34 0.34 0.33 0.33 0.32 0.32 0.31 0.31 0.29 0.24 0.19 0.15 0.24 0.24 0.42 0.45 0.49 0.52

The fixed asset turnover ratio for RBC Bearings Incorporated demonstrates a fluctuating trend over the observed period. Initially low at 0.23 as of December 31, 2020, the ratio improved steadily and significantly thereafter, peaking at 3.71 as of September 30, 2023. This indicates that the company was generating $3.71 in sales revenue for every dollar invested in fixed assets during that period.

On the other hand, the total asset turnover ratio experienced a decline during the earlier periods, with a low of 0.15 as of December 31, 2021. However, there was a gradual increase in the ratio in subsequent periods, reaching 0.35 as of March 31, 2025. This suggests that the company was able to generate $0.35 in sales for each dollar of total assets in the most recent period.

Overall, the trend in both ratios indicates an improvement in asset utilization efficiency over time. The significant increase in fixed asset turnover, along with the gradual improvement in total asset turnover, may suggest better operational efficiency and effective utilization of assets by RBC Bearings Incorporated.