Regal Beloit Corporation (RRX)
Fixed asset turnover
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,721,600 | 10,161,100 | 8,276,900 | 6,192,100 | 5,129,100 | 5,130,700 | 4,719,500 | 4,270,400 | 3,794,700 | 3,374,200 | 3,230,700 | 2,967,300 | 3,609,400 | 3,567,100 | 4,348,800 | 5,463,500 | 5,742,400 | 5,885,900 | 6,192,100 | 6,359,100 |
| Property, plant and equipment | US$ in thousands | 996,800 | 1,055,600 | 1,204,800 | 1,214,700 | 759,900 | 790,500 | 822,000 | 852,700 | 858,200 | 514,100 | 534,100 | 539,200 | 555,500 | 549,400 | 556,700 | 570,300 | 605,000 | 609,000 | 622,300 | 608,500 |
| Fixed asset turnover | 10.76 | 9.63 | 6.87 | 5.10 | 6.75 | 6.49 | 5.74 | 5.01 | 4.42 | 6.56 | 6.05 | 5.50 | 6.50 | 6.49 | 7.81 | 9.58 | 9.49 | 9.66 | 9.95 | 10.45 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,721,600K ÷ $996,800K
= 10.76
The fixed asset turnover for Regal Rexnord Corp has shown some fluctuations over the past eight quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates that the company is more efficient in generating revenue from its assets.
Looking at the data, we observe that the fixed asset turnover ranged from 4.23 to 6.57 over the past eight quarters. The trend indicates some variability in the company's ability to generate revenue from its fixed assets.
The highest fixed asset turnover was observed in Q4 2022 at 6.57, which suggests that Regal Rexnord Corp was very efficient in utilizing its fixed assets to generate revenue during that period. Conversely, the lowest fixed asset turnover of 4.23 was seen in Q1 2023, indicating a relatively lower level of efficiency in generating revenue from its fixed assets.
Overall, the company's performance in terms of fixed asset turnover has been relatively strong, as it consistently maintained ratios above 4. However, management may want to investigate the fluctuations in the ratio to ensure efficient utilization of fixed assets across all periods. Monitoring and potentially improving this ratio could lead to enhanced operational efficiency and overall financial performance for Regal Rexnord Corp.
Peer comparison
Dec 31, 2023