Regal Beloit Corporation (RRX)
Fixed asset turnover
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,033,800 | 6,180,900 | 6,353,300 | 6,574,300 | 6,250,700 | 5,887,200 | 5,562,700 | 5,143,500 | 5,217,900 | 5,189,800 | 4,757,200 | 4,294,700 | 3,810,300 | 3,374,200 | 3,239,700 | 2,986,900 | 2,907,000 | 2,864,700 | 2,878,800 | 3,118,400 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 11,917,700 | 12,382,800 | 1,374,000 | 7,268,400 | 7,202,900 | 7,361,000 | 7,498,700 | 7,558,800 | 2,648,500 | 605,900 | 614,500 | 628,900 | 624,100 | 634,300 | — |
| Fixed asset turnover | — | — | — | — | — | 0.49 | 0.45 | 3.74 | 0.72 | 0.72 | 0.65 | 0.57 | 0.50 | 1.27 | 5.35 | 4.86 | 4.62 | 4.59 | 4.54 | — |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,033,800K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company generates sales revenue from its investment in fixed assets. Looking at the historical data for Regal Beloit Corporation, we can see fluctuations in the fixed asset turnover ratio over the years.
- From June 2020 to June 2021, the fixed asset turnover ratio increased steadily from 4.54 to 5.35. This suggests that the company was able to generate more sales revenue relative to its investment in fixed assets during this period, indicating improved asset utilization efficiency.
- However, there was a significant decline in the ratio in the subsequent quarters, with values dropping to as low as 0.50 by December 2021. Such a sharp decline could indicate challenges in efficiently utilizing fixed assets to generate revenue, possibly due to operational issues, changes in market conditions, or inefficiencies in asset management.
- The ratio showed some fluctuations in the following quarters, briefly increasing in March 2023 to 3.74 before dropping again. These fluctuations suggest that the company's ability to generate sales revenue from fixed assets remained volatile during this period.
- Towards the end of the data series, the fixed asset turnover ratio remained low, hovering around 0.65 to 0.72. These low values may signal ongoing challenges in effectively utilizing the company's fixed assets to drive revenue growth.
Overall, the analysis of Regal Beloit Corporation's fixed asset turnover ratio highlights the importance of monitoring efficiency in asset utilization and the need for the company to address any underlying issues that could be impacting its ability to generate sales revenue from its fixed asset base.
Peer comparison
Dec 31, 2024