Regal Beloit Corporation (RRX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,033,800 | 6,250,700 | 5,217,900 | 3,810,300 | 2,907,000 |
| Property, plant and equipment | US$ in thousands | — | — | 7,268,400 | 7,558,800 | 628,900 |
| Fixed asset turnover | — | — | 0.72 | 0.50 | 4.62 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,033,800K ÷ $—K
= —
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. Regal Beloit Corporation's fixed asset turnover has shown some fluctuations over the years.
As of December 31, 2020, the fixed asset turnover was strong at 4.62, indicating that Regal Beloit was generating $4.62 in sales for every dollar invested in fixed assets.
However, there was a significant decline in the ratio by the end of 2021, dropping to 0.50. This sharp decrease may suggest inefficiencies in utilizing fixed assets to generate revenue during that period.
In 2022, the fixed asset turnover improved to 0.72, although it remained relatively low compared to previous years. This indicates that the company was able to increase sales relative to its investment in fixed assets, but there is still room for improvement in asset utilization.
The data for 2023 and 2024 is not available, which makes it challenging to assess the trend accurately for those years.
Overall, the fluctuating trend in Regal Beloit Corporation's fixed asset turnover ratios suggests varying levels of efficiency in utilizing fixed assets to drive sales revenue. Further analysis and comparison with industry benchmarks would provide more insights into the company's operational performance in this area.
Peer comparison
Dec 31, 2024