RBC Bearings Incorporated (RBC)

RBC Bearings Incorporated has shown a decreasing trend in its liquidity ratios over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 8.25 in March 31, 2021, to 3.26 in March 31, 2025. This indicates a decline in the company's short-term liquidity position.

Similarly, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also decreased from 3.99 in March 31, 2021, to 1.09 in March 31, 2025. This declining trend indicates that RBC Bearings may face challenges in meeting its short-term obligations without relying on inventory.

Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, decreased significantly from 2.74 in March 31, 2021, to 0.12 in March 31, 2025. This indicates a substantial decrease in the company's ability to cover its short-term liabilities with readily available cash.

Overall, these decreasing liquidity ratios suggest that RBC Bearings' liquidity position has weakened over the years, and the company may need to implement strategies to improve its short-term liquidity in order to meet its financial obligations effectively.

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Additional liquidity measure

The cash conversion cycle for RBC Bearings Incorporated has shown a decreasing trend over the years, from 385.39 days as of March 31, 2021, to 275.58 days as of March 31, 2025. This implies that the company is taking less time to convert its investments in inventory and other resources into cash, indicating improved efficiency in managing working capital. However, there was a slight increase in the cash conversion cycle from 245.45 days as of March 31, 2023, to 269.12 days as of March 31, 2024. This suggests a temporary slowdown in the company's ability to efficiently convert its resources into cash during that particular period. Overall, the decreasing trend in the cash conversion cycle is a positive indicator of improved operational efficiency and liquidity management for RBC Bearings Incorporated.