RBC Bearings Incorporated (RBC)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.37% | 42.97% | 41.16% | 37.87% | 38.44% |
| Operating profit margin | 22.61% | 21.93% | 11.64% | 6.76% | 12.93% |
| Pretax margin | 19.06% | 16.78% | 14.27% | 9.30% | 18.07% |
| Net profit margin | 15.05% | 13.45% | 11.35% | 4.53% | 14.80% |
From the data provided, we can analyze the profitability ratios of RBC Bearings Incorporated over the five-year period from March 31, 2021, to March 31, 2025.
1. Gross Profit Margin:
- The gross profit margin, which measures the profitability of a company's core business activities, shows an increasing trend from 38.44% in 2021 to 44.37% in 2025. This indicates that RBC Bearings has been able to improve its efficiency in producing goods while maintaining stable pricing.
2. Operating Profit Margin:
- The operating profit margin, reflecting the company's ability to generate profits from its operating activities, fluctuates over the years. It significantly decreased from 12.93% in 2021 to 6.76% in 2022 but then shows a positive trend, reaching 22.61% in 2025. This suggests that RBC Bearings has managed to enhance its operational efficiency and control costs effectively.
3. Pre-tax Margin:
- The pre-tax margin, indicating the profitability of a company before accounting for taxes, exhibits an upward trajectory from 18.07% in 2021 to 19.06% in 2025. This improvement signifies that RBC Bearings has been able to increase profitability while managing its tax liabilities efficiently.
4. Net Profit Margin:
- The net profit margin, which measures the company's bottom-line profitability after all expenses have been deducted, shows an overall positive trend. It starts at 14.80% in 2021, dips to 4.53% in 2022, and then rises consistently to 15.05% in 2025. This indicates that RBC Bearings has successfully managed its costs, including interest and taxes, to drive profitability.
In conclusion, RBC Bearings Incorporated has demonstrated improvements in its profitability ratios over the analyzed period, reflecting better cost management, operational efficiency, and overall financial performance. It is essential for the company to sustain this positive trend to ensure long-term profitability and growth.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.90% | 7.31% | 3.65% | 1.31% | 5.49% |
| Return on assets (ROA) | 5.25% | 4.49% | 3.55% | 0.88% | 6.28% |
| Return on total capital | 12.26% | 12.37% | 11.29% | 5.07% | 9.06% |
| Return on equity (ROE) | 8.12% | 7.63% | 6.57% | 1.80% | 7.33% |
RBC Bearings Incorporated's profitability ratios show fluctuations over the period from March 31, 2021, to March 31, 2025.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA declined from 5.49% in 2021 to 1.31% in 2022 but recovered to 3.65% in 2023, showing a trend of volatility. Subsequently, it improved significantly to 7.31% in 2024 and further to 7.90% in 2025.
2. Return on Assets (ROA):
- Similarly, ROA decreased from 6.28% in 2021 to 0.88% in 2022, indicating a substantial decline in profitability. However, it progressively increased to 5.25% by 2025, showing signs of recovery and improvement.
3. Return on Total Capital:
- Return on total capital witnessed fluctuations, starting at 9.06% in 2021, dropping to 5.07% in 2022, and then increasing to 12.26% by 2025. This ratio portrays a volatile performance over the years.
4. Return on Equity (ROE):
- ROE started at 7.33% in 2021, experienced a significant drop to 1.80% in 2022, but gradually recovered to 8.12% by 2025. The improvement in ROE indicates enhanced profitability from the shareholders' perspective.
It is essential to delve deeper into the company's financial performance during this period to understand the factors driving the fluctuations in these profitability ratios.