RBC Bearings Incorporated (RBC)
Solvency ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.55 | 1.59 | 1.63 | 1.67 | 1.70 | 1.74 | 1.78 | 1.82 | 1.85 | 1.89 | 1.94 | 1.98 | 2.04 | 2.09 | 1.10 | 1.10 | 1.17 | 1.17 | 1.17 | 1.18 |
RBC Bearings Incorporated has consistently maintained a healthy solvency position, as indicated by its low debt ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 over the reported periods, signifying that the company has not relied heavily on debt to finance its operations and investments.
The Financial leverage ratio, which provides insight into the company's ability to meet its financial obligations, has shown a declining trend from 1.18 in June 2020 to 1.55 in March 2025. This decrease indicates that the company's reliance on debt has been decreasing over time, reflecting a more conservative financial structure.
Overall, the consistently low debt ratios and decreasing financial leverage ratio suggest that RBC Bearings Incorporated has a strong solvency position and has effectively managed its financial obligations without taking on excessive debt, which is a positive indicator of its financial health and stability.
Coverage ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.22 | 5.54 | 4.95 | 4.69 | 4.33 | 4.04 | 3.89 | 3.83 | 3.79 | 3.75 | 3.49 | 2.64 | 2.81 | 3.68 | 6.65 | 89.49 | 82.06 | 83.73 | 83.13 | 83.22 |
The interest coverage ratio for RBC Bearings Incorporated shows a fluctuating trend over the analyzed period. The ratio has been consistently above 80 in the first three quarters of the fiscal year 2021, indicating a high level of earnings available to cover the interest obligations. However, there was a significant drop in the interest coverage ratio in the fourth quarter of fiscal year 2021, falling to 6.65, which may suggest a potential strain on the ability of the company to meet its interest payments comfortably.
Subsequently, the interest coverage ratio continued to decline further into fiscal year 2022 and 2023, reaching its lowest point at 2.64 in the second quarter of fiscal year 2022. This sharp decline in the interest coverage ratio raises concerns about the company's ability to service its debt obligations using its operating income.
However, there seems to be a slight improvement in the interest coverage ratio in the latter part of fiscal year 2023 and heading into fiscal year 2024, gradually increasing to 6.22 by the end of the first quarter of fiscal year 2025. This improvement may indicate that the company is enhancing its ability to cover interest expenses with its operating profits.
Overall, the fluctuating trend in RBC Bearings Incorporated's interest coverage ratio suggests varying levels of financial health and risk associated with debt service obligations over the analyzed period. Investors and stakeholders should closely monitor this ratio to assess the company's ability to manage its interest costs in relation to its earnings.