RBC Bearings Incorporated (RBC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 63,500 | 71,600 | 56,600 | 56,700 | 65,400 | 82,036 | 88,495 | 119,587 | 182,900 | 255,503 | 1,348,610 | 175,771 | 151,086 | 126,192 | 166,352 | 143,615 | 103,255 | 60,328 | 36,398 | 32,713 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 120,320 | 90,249 | 75,539 | — | — | 1,700 | 8,800 | 5,700 | 8,300 |
| 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 |
| Cash ratio | 0.22 | 0.25 | 0.20 | 0.18 | 0.21 | 0.29 | 0.29 | 0.36 | 0.58 | 0.74 | 12.01 | 3.10 | 2.74 | 2.28 | 1.88 | 1.43 | 1.01 | 0.70 | 0.41 | 0.41 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($63,500K
+ $—K)
÷ $294,300K
= 0.22
The cash ratio of RBC Bearings Incorporated has shown significant fluctuations over the past few quarters. The ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents.
From Mar 31, 2019, to Dec 31, 2021, the cash ratio remained relatively stable, ranging between 0.41 and 0.74, indicating that the company had a reasonable amount of cash to cover its short-term liabilities during this period.
However, starting from Mar 31, 2022, there was a drastic increase in the cash ratio, reaching exceptionally high levels of 12.01, 3.10, and 2.74 in consecutive quarters. This spike in the cash ratio might suggest a temporary distortion caused by a significant increase in cash and cash equivalents or a decrease in short-term liabilities during these quarters.
Subsequently, the cash ratio declined to more normal levels by Dec 31, 2022, and continued to decrease steadily until Mar 31, 2024, when it stood at 0.22. This decline may indicate a reduction in the company's cash holdings relative to its short-term obligations, potentially highlighting a need for caution in managing short-term liquidity in the future.
In conclusion, the fluctuating cash ratios of RBC Bearings Incorporated indicate varying levels of liquidity and the potential need for the company to closely monitor its cash positions to ensure it can meet its short-term obligations efficiently.
Peer comparison
Mar 31, 2024