RBC Bearings Incorporated (RBC)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.55 | 1.70 | 1.85 | 2.04 | 1.17 |
RBC Bearings Incorporated demonstrates strong solvency ratios over the analyzed period, with consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00. This indicates that the company's capital structure is primarily composed of equity rather than debt, signaling a low level of financial risk in terms of leverage.
Furthermore, the financial leverage ratio, which measures the company's reliance on debt financing, decreased from 2.04 in 2022 to 1.55 in 2025. This suggests that RBC Bearings has been effectively managing its debt levels over the years, reducing its financial risk and potentially improving its financial stability.
Overall, the solvency ratios of RBC Bearings reflect a prudent financial strategy with a strong focus on maintaining a healthy balance between debt and equity, which could enhance the company's ability to weather economic downturns and pursue growth opportunities in the future.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 6.22 | 4.33 | 3.73 | 2.90 | 77.96 |
The interest coverage ratio is used to evaluate a company's ability to meet its interest obligations on outstanding debt. For RBC Bearings Incorporated, the interest coverage ratio has shown fluctuations over the past five years.
As of March 31, 2021, the interest coverage ratio was 77.96, indicating that the company generated sufficient earnings to cover its interest expenses nearly 78 times over. This suggests a strong ability to meet interest payments.
However, in the subsequent years, the interest coverage ratio decreased significantly. By March 31, 2022, the ratio dropped to 2.90, signaling a substantial decline in the company's ability to cover its interest obligations. This may raise concerns about RBC Bearings' financial health and its ability to meet debt obligations.
Over the following years, the interest coverage ratio improved slightly but remained relatively low compared to the initial high level in 2021. By March 31, 2025, the ratio had increased to 6.22, indicating a better ability to cover interest expenses compared to the previous years, but still not at the level seen in 2021.
Overall, the trend in RBC Bearings' interest coverage ratio suggests that the company experienced some challenges in meeting its interest obligations in the past few years, although there has been a modest improvement more recently. Analysts and investors may want to monitor this ratio closely to assess the company's financial stability and debt repayment capacity in the future.