RBC Bearings Incorporated (RBC)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.43 | 0.47 | 0.50 | 0.52 | 0.55 | 0.59 | 0.62 | 0.65 | 0.71 | 0.74 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.03 |
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 few quarters, indicating a lower reliance on debt financing compared to equity. The ratio decreased from 0.74 in the first quarter of 2022 to 0.43 in the first quarter of 2024, suggesting that the company has been managing its debt levels effectively and/or increasing its equity base.
Overall, a declining debt-to-equity ratio can be viewed positively by investors and creditors as it signifies a lower financial risk and a healthier balance sheet. However, it is important to consider the reasons behind this trend, as excessively low debt levels could also indicate missed opportunities for profitable investments or growth. Continued monitoring of the trend in the debt-to-equity ratio is essential to assess the company's financial health and its strategic decisions regarding capital structure.
Peer comparison
Mar 31, 2024