RBC Bearings Incorporated (RBC)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 36,800 | 63,500 | 65,400 | 182,862 | 151,086 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 90,249 |
| Total current liabilities | US$ in thousands | 315,300 | 294,300 | 309,300 | 313,460 | 88,238 |
| Cash ratio | 0.12 | 0.22 | 0.21 | 0.58 | 2.74 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($36,800K
+ $—K)
÷ $315,300K
= 0.12
The cash ratio of RBC Bearings Incorporated has exhibited a declining trend over the past five years. As of March 31, 2021, the cash ratio stood at a healthy 2.74, indicating that the company had $2.74 in cash and cash equivalents for every dollar of current liabilities. However, this ratio dropped sharply to 0.58 by March 31, 2022, signifying a significant decrease in the company's ability to cover its short-term obligations with cash on hand.
Moreover, the cash ratio continued to decrease further to 0.21 as of March 31, 2023, and then slightly improved to 0.22 by March 31, 2024. Despite this minor uptick, the cash ratio remained relatively low, suggesting that RBC Bearings Incorporated may be facing challenges in maintaining sufficient liquid assets to meet its immediate financial obligations.
By March 31, 2025, the cash ratio had decreased to 0.12, indicating a continued strain on the company's liquidity position. This declining trend in the cash ratio raises concerns about RBC Bearings Incorporated's ability to manage its short-term financial commitments through readily available cash reserves. It is advisable for the company to closely monitor its liquidity position and take necessary steps to improve its cash holdings to ensure financial stability and operational resilience.
Peer comparison
Mar 31, 2025