RBC Bearings Incorporated (RBC)
Working capital turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,560,300 | 1,541,028 | 1,518,728 | 1,502,328 | 1,469,328 | 1,433,742 | 1,349,095 | 1,140,795 | 942,900 | 744,369 | 623,277 | 608,712 | 609,000 | 636,018 | 666,710 | 701,811 | 754,839 | 755,013 | 748,716 | 738,750 |
| Total current assets | US$ in thousands | 965,500 | 957,300 | 938,200 | 935,500 | 913,300 | 901,771 | 911,531 | 916,080 | 962,200 | 987,237 | 1,859,880 | 786,124 | 728,202 | 692,342 | 661,014 | 638,849 | 612,006 | 554,736 | 533,950 | 514,441 |
| Total current liabilities | US$ in thousands | 294,300 | 291,600 | 288,300 | 316,000 | 309,300 | 282,672 | 306,249 | 330,405 | 313,500 | 343,036 | 112,291 | 95,502 | 88,238 | 88,412 | 88,510 | 100,290 | 103,755 | 99,002 | 103,904 | 99,851 |
| Working capital turnover | 2.32 | 2.31 | 2.34 | 2.43 | 2.43 | 2.32 | 2.23 | 1.95 | 1.45 | 1.16 | 0.36 | 0.88 | 0.95 | 1.05 | 1.16 | 1.30 | 1.49 | 1.66 | 1.74 | 1.78 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,560,300K ÷ ($965,500K – $294,300K)
= 2.32
The working capital turnover ratio of RBC Bearings Incorporated has exhibited some fluctuations over the period under consideration. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
From March 2019 to March 2020, there was a gradual increase in the working capital turnover ratio, indicating an improvement in the company's ability to generate sales relative to its working capital. However, there was a slight decline in the ratio in the subsequent quarter, followed by a significant increase in efficiency in the June 2020 quarter.
The ratio continued to increase steadily from June 2020 to June 2021, suggesting that RBC Bearings was becoming more effective in leveraging its working capital to drive sales. However, there was a notable decrease in efficiency in the September 2021 quarter, followed by a substantial improvement in the December 2021 quarter.
From December 2021 to March 2024, the working capital turnover ratio displayed a mix of fluctuations, with some quarters showing improvements in efficiency, while others showing declines. Overall, the company's ability to generate sales from its working capital has been relatively stable, with the ratio ranging from 0.36 to 2.43 during the period analyzed.
It is important for RBC Bearings to closely monitor its working capital turnover ratio to ensure that it maintains an optimal balance between working capital management and revenue generation. Any significant deviations from the historical trend should be thoroughly investigated to identify potential areas for operational improvement.
Peer comparison
Mar 31, 2024