RBC Bearings Incorporated (RBC)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.26 | 3.43 | 3.48 | 3.01 | 3.28 | 3.28 | 3.25 | 2.96 | 2.95 | 3.19 | 2.98 | 2.77 | 3.07 | 2.88 | 16.56 | 16.56 | 8.25 | 7.83 | 7.47 | 6.37 |
| Quick ratio | 1.09 | 1.08 | 1.17 | 1.03 | 1.11 | 1.03 | 1.07 | 0.98 | 0.99 | 1.05 | 1.06 | 1.09 | 1.37 | 1.33 | 14.06 | 14.06 | 3.99 | 3.49 | 3.10 | 2.56 |
| Cash ratio | 0.12 | 0.21 | 0.30 | 0.23 | 0.22 | 0.25 | 0.20 | 0.18 | 0.21 | 0.29 | 0.29 | 0.36 | 0.58 | 0.74 | 13.08 | 13.08 | 2.74 | 2.28 | 1.88 | 1.43 |
Based on the data provided, RBC Bearings Incorporated's liquidity ratios have shown fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been strong, peaking at 16.56 in June 2021 and September 2021. However, it decreased significantly by the end of 2022 and has been fluctuating around 3 in recent periods.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects fluctuations in RBC Bearings' liquidity position. The ratio peaked at 14.06 in June 2021 and September 2021, but then decreased sharply by the end of 2021 and has been hovering around 1 in recent periods.
The cash ratio, which indicates the company's ability to cover immediate liabilities with its most liquid assets, followed a similar trend. The ratio was strong in mid-2021 at 13.08 but declined significantly by the end of 2021. It has been fluctuating around 0.2 to 0.3 in recent periods.
Overall, while RBC Bearings has maintained a generally healthy liquidity position, the significant declines in liquidity ratios towards the end of 2021 and ongoing fluctuations suggest potential shifts in the company's ability to meet short-term obligations with its available assets. Monitoring these ratios closely will be crucial to understanding RBC Bearings' liquidity management and financial health in the future.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 275.58 | 267.23 | 261.72 | 256.56 | 253.89 | 251.88 | 255.14 | 251.52 | 241.79 | 238.47 | 240.98 | 268.51 | 318.55 | 389.93 | 375.46 | 384.30 | 385.39 | 375.11 | 360.39 | 334.08 |
The cash conversion cycle of RBC Bearings Incorporated has shown fluctuations over the period from June 30, 2020, to March 31, 2025. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash from sales.
From June 30, 2020, to March 31, 2022, the cash conversion cycle increased steadily, peaking at 389.93 days on December 31, 2021. This indicates that the company took longer to convert its investments into cash, potentially facing challenges in managing inventory, collecting receivables, or delaying payments to suppliers.
However, starting from March 31, 2022, the cash conversion cycle began to decrease significantly, reaching its lowest point of 238.47 days on December 31, 2022. This reduction suggests improvements in inventory management, quicker collection of receivables, or more efficient payment practices, leading to a shorter cash conversion cycle.
Subsequently, the cash conversion cycle slightly increased from March 31, 2023, to September 30, 2024, indicating a longer duration for converting investments into cash. This increase could be due to various factors such as changes in business operations, market dynamics, or strategic decisions impacting working capital management.
Overall, monitoring the cash conversion cycle provides insights into RBC Bearings' efficiency in managing its operational cash flows and working capital. Analyzing trends in this metric can help identify areas for improvement and assess the company's ability to generate cash from its core operations.