RBC Bearings Incorporated (RBC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 372,100 | 364,257 | 350,657 | 353,757 | 340,757 | 329,884 | 323,437 | 311,337 | 290,540 | 257,238 | 207,550 | 150,624 | 116,834 | 103,985 | 111,411 | 118,489 | 117,348 | 125,096 | 135,754 | 146,716 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,031,400 | 2,939,200 | 2,883,300 | 2,803,900 | 2,751,900 | 2,696,600 | 2,634,200 | 2,587,700 | 2,535,900 | 2,480,930 | 2,440,140 | 2,397,640 | 2,371,850 | 2,334,970 | 2,337,100 | 2,337,100 | 1,229,950 | 1,204,810 | 1,172,100 | 1,142,640 |
| Return on total capital | 12.27% | 12.39% | 12.16% | 12.62% | 12.38% | 12.23% | 12.28% | 12.03% | 11.46% | 10.37% | 8.51% | 6.28% | 4.93% | 4.45% | 4.77% | 5.07% | 9.54% | 10.38% | 11.58% | 12.84% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $372,100K ÷ ($—K + $3,031,400K)
= 12.27%
RBC Bearings Incorporated's return on total capital has exhibited fluctuations over the period under review. The ratio declined from 12.84% as of June 30, 2020, to a low of 4.45% as of December 31, 2021, indicating a diminishing profitability relative to the total capital employed. However, there was a gradual improvement in the return on total capital from 4.93% as of March 31, 2022, to 12.62% as of June 30, 2024.
The return on total capital peaked at 12.62% on June 30, 2024, before experiencing a slight decline to 12.27% as of March 31, 2025. This suggests that RBC Bearings Incorporated has been able to efficiently utilize its total capital to generate returns for its stakeholders, although there have been periods of lower performance in between.
Overall, the return on total capital trend indicates that RBC Bearings Incorporated has made efforts to enhance its operational efficiency and profitability over the years, as reflected in the improved return on total capital in recent periods. It is essential for the company to continue monitoring and optimizing its capital allocation strategies to maintain sustainable and satisfactory returns for its investors.
Peer comparison
Mar 31, 2025