Regal Beloit Corporation (RRX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,732,000 | 5,128,000 | 3,737,000 | 2,864,300 | 3,230,400 |
| Property, plant and equipment | US$ in thousands | 996,800 | 759,900 | 858,200 | 555,500 | 605,000 |
| Fixed asset turnover | 5.75 | 6.75 | 4.35 | 5.16 | 5.34 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,732,000K ÷ $996,800K
= 5.75
Regal Rexnord Corp's fixed asset turnover ratio has displayed a fluctuating trend over the past five years. In 2023, the fixed asset turnover ratio stands at 6.00, which represents the company's ability to generate sales revenue from its investment in fixed assets. This ratio indicates that the company generated $6.00 in sales for every dollar invested in fixed assets during the year.
Comparing this to the previous year, we observe a slight decrease from 6.47 in 2022. Despite this decline, the 2023 ratio is still relatively high, indicating efficient utilization of fixed assets to generate revenue.
In 2021, the fixed asset turnover ratio was comparatively lower at 4.19, suggesting that the company's fixed assets were not being utilized as efficiently to generate sales revenue as in the following years. However, the company improved its fixed asset turnover significantly in 2022, reaching 6.47, indicating a more effective deployment of fixed assets to generate sales revenue.
Further looking back, 2020 displayed a fixed asset turnover ratio of 5.23, showing a substantial improvement over 2019, where the ratio was at 5.35. This trend indicates that Regal Rexnord Corp has gradually enhanced its efficiency in converting fixed assets into sales revenue over the analyzed period.
Overall, the company's fixed asset turnover ratio has shown variations over the years but has generally trended upwards, suggesting improved utilization of fixed assets to generate sales revenue, with the 2023 ratio standing at a respectable level.
Peer comparison
Dec 31, 2023