RBC Bearings Incorporated (RBC)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.25 | 0.30 | 0.35 | 0.01 | 0.01 |
| Debt-to-capital ratio | 0.30 | 0.35 | 0.42 | 0.01 | 0.01 |
| Debt-to-equity ratio | 0.43 | 0.55 | 0.71 | 0.01 | 0.01 |
| Financial leverage ratio | 1.70 | 1.85 | 2.04 | 1.16 | 1.18 |
The solvency ratios of RBC Bearings Incorporated indicate the firm's ability to meet its long-term financial obligations and the extent of its leverage.
The debt-to-assets ratio has been declining steadily from 0.35 in 2022 to 0.25 in 2024, suggesting that the company has been relying less on debt to finance its assets and has improved its asset coverage.
Similarly, the debt-to-capital ratio has also shown a decreasing trend from 0.42 in 2022 to 0.30 in 2024. This indicates that the company is relying less on debt capital relative to its total capital structure, which is a positive sign for solvency.
The debt-to-equity ratio has followed a similar pattern, decreasing from 0.71 in 2022 to 0.43 in 2024. A lower debt-to-equity ratio indicates a lower reliance on debt for financing, reducing the financial risk for the company.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, has also been on a downward trend. The ratio decreased from 2.04 in 2022 to 1.70 in 2024, suggesting that the company has reduced its financial leverage and improved its financial stability.
Overall, the decreasing trend in all solvency ratios indicates that RBC Bearings Incorporated has been effectively managing its debt levels and improving its solvency position over the years. This trend is a positive signal for investors and creditors as it reflects a healthier financial position for the company.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.33 | 3.73 | 2.90 | 81.86 | 82.77 |
The interest coverage ratio for RBC Bearings Incorporated has been relatively stable over the past five years, ranging from 2.90 to 4.33. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations from its operating income. However, the significant increase in the interest coverage ratio from 2022 to 2023, then a subsequent decrease in 2024, may suggest some fluctuation in the company's ability to cover its interest expenses in recent years. It is important to further analyze the reasons behind these fluctuations to understand the company's financial health and ability to service its debt obligations effectively.