RBC Bearings Incorporated (RBC)

Solvency ratios

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
Debt-to-assets ratio 0.25 0.27 0.28 0.29 0.30 0.31 0.32 0.33 0.35 0.35 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02
Debt-to-capital ratio 0.30 0.32 0.33 0.34 0.35 0.37 0.38 0.39 0.42 0.42 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.03
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
Financial leverage ratio 1.70 1.74 1.78 1.82 1.85 1.89 1.94 1.98 2.04 2.09 1.10 1.17 1.16 1.17 1.17 1.18 1.18 1.18 1.20 1.20

RBC Bearings Incorporated's solvency ratios demonstrate a consistent trend over the past few years. The debt-to-assets ratio has decreased steadily from 0.35 in December 2021 to 0.25 in March 2024, indicating a lower reliance on debt to finance assets. Similarly, the debt-to-capital and debt-to-equity ratios have also shown a declining trend, suggesting a more conservative capital structure and reduced financial risk.

The financial leverage ratio has fluctuated but generally trended upwards over the same period, indicating that the company has been using more debt to finance its operations. However, the increase in leverage seems to have been managed within reasonable limits, as reflected in the declining debt ratios.

Overall, the solvency ratios for RBC Bearings Incorporated suggest a prudent approach to managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.

Coverage ratios

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
Interest coverage 4.33 4.04 3.88 3.77 3.74 3.84 3.51 2.70 2.90 3.34 6.36 89.34 81.86 83.57 82.98 83.08 82.77 66.47 44.86 33.58

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher ratio indicates a stronger ability to meet interest obligations.

Looking at the historical trend of RBC Bearings Incorporated's interest coverage ratio, we observe fluctuations over the reporting periods. The company's interest coverage ratio has generally been above 2, indicating that RBC Bearings has sufficient earnings to cover its interest expenses.

From December 2018 to December 2020, the interest coverage ratio remained relatively stable, ranging between 2.70 and 3.84. However, there was a significant spike in the ratio in the fourth quarter of 2020, reaching 89.34, and remaining very high in the following quarter. This spike could be due to a one-time event or an anomaly in the financial data.

During the subsequent quarters, the interest coverage ratio decreased significantly but remained above 2, suggesting that the company's ability to cover interest expenses weakened compared to the exceptional levels seen previously. The ratio fluctuated around the 3 to 4 range, with slight variations in each quarter.

Analyzing the interest coverage ratio indicates that RBC Bearings Incorporated has maintained a generally healthy ability to cover its interest expenses over the periods under review. However, it is essential to monitor the trend closely to ensure the company's financial health and ability to meet its debt obligations in the long run.