RBC Bearings Incorporated (RBC)
Debt-to-equity ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,188,100 | 1,393,500 | 1,686,800 | 13,495 | 16,583 |
| Total stockholders’ equity | US$ in thousands | 2,751,900 | 2,535,900 | 2,372,500 | 1,232,100 | 1,122,900 |
| Debt-to-equity ratio | 0.43 | 0.55 | 0.71 | 0.01 | 0.01 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,188,100K ÷ $2,751,900K
= 0.43
The debt-to-equity ratio of RBC Bearings Incorporated has shown a decreasing trend over the past five years. The ratio was 0.43 as of March 31, 2024, down from 0.55 in the previous year and significantly lower than the ratios of 0.71, 0.01, and 0.01 reported in the preceding years. This declining trend indicates that the company has been relying less on debt financing relative to equity financing, which can be seen as a positive indicator of improved financial stability and reduced financial risk. This shift may be attributed to various factors such as successful management of debt levels, improved profitability, or increased equity investment. Overall, the decreasing debt-to-equity ratio suggests that RBC Bearings has been effectively managing its capital structure and leveraging its equity position to support its operations and growth.
Peer comparison
Mar 31, 2024