RBC Bearings Incorporated (RBC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 340,500 | 329,611 | 322,364 | 307,164 | 286,364 | 263,440 | 209,057 | 154,122 | 120,200 | 94,198 | 106,319 | 115,606 | 114,600 | 124,855 | 135,513 | 146,475 | 156,024 | 153,211 | 136,186 | 134,620 |
| Long-term debt | US$ in thousands | 1,188,100 | 1,262,800 | 1,321,900 | 1,343,300 | 1,393,500 | 1,462,530 | 1,520,600 | 1,563,800 | 1,686,800 | 1,726,730 | 7,105 | 10,249 | 13,495 | 14,366 | 13,758 | 16,635 | 16,583 | 16,160 | 25,003 | 26,267 |
| Total stockholders’ equity | US$ in thousands | 2,751,900 | 2,696,600 | 2,634,200 | 2,587,700 | 2,535,900 | 2,480,900 | 2,440,100 | 2,397,600 | 2,372,500 | 2,337,950 | 2,340,960 | 1,275,970 | 1,232,100 | 1,204,810 | 1,172,100 | 1,142,640 | 1,122,900 | 1,079,210 | 1,041,840 | 997,349 |
| Return on total capital | 8.64% | 8.32% | 8.15% | 7.81% | 7.29% | 6.68% | 5.28% | 3.89% | 2.96% | 2.32% | 4.53% | 8.99% | 9.20% | 10.24% | 11.43% | 12.64% | 13.69% | 13.99% | 12.77% | 13.15% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $340,500K ÷ ($1,188,100K + $2,751,900K)
= 8.64%
The return on total capital for RBC Bearings Incorporated has shown a generally increasing trend over the recent quarters, indicating improved efficiency in generating profits relative to the total capital employed in the business. The company's return on total capital increased from 7.29% in March 2023 to 8.64% in March 2024, reaching its highest point in the last five quarters.
This upward trend suggests that RBC Bearings has been able to generate more income from its total capital base, reflecting effective capital utilization and operational performance. The consistent improvement in return on total capital demonstrates management's ability to create value for shareholders through efficient allocation of resources.
However, it is important to note the fluctuation in return on total capital in the historical data, with some quarters showing significant variability. This may indicate occasional challenges or changes in the business environment affecting the company's profitability and capital efficiency.
Overall, the increasing trend in return on total capital for RBC Bearings reflects positive performance and financial management, suggesting a focus on enhancing profitability and maximizing returns for investors.
Peer comparison
Mar 31, 2024