Regal Beloit Corporation (RRX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,687,000 | 3,880,800 | 3,884,100 | 3,761,400 | 4,001,100 | 4,216,300 | 3,780,100 | 3,362,100 | 2,894,900 | 2,561,900 | 2,466,200 | 2,289,700 | 2,244,400 | 2,561,100 | 2,468,000 | 2,521,600 | 2,480,000 | 2,583,400 | 2,692,700 | 2,765,200 |
| Inventory | US$ in thousands | 1,274,200 | 1,302,800 | 1,576,100 | 1,732,500 | 1,336,900 | 1,361,500 | 1,388,400 | 1,336,900 | 1,192,400 | 808,200 | 759,200 | 722,200 | 690,300 | 677,200 | 679,700 | 655,300 | 678,400 | 725,700 | 765,300 | 803,800 |
| Inventory turnover | 3.68 | 2.98 | 2.46 | 2.17 | 2.99 | 3.10 | 2.72 | 2.51 | 2.43 | 3.17 | 3.25 | 3.17 | 3.25 | 3.78 | 3.63 | 3.85 | 3.66 | 3.56 | 3.52 | 3.44 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,687,000K ÷ $1,274,200K
= 3.68
The inventory turnover ratio for Regal Rexnord Corp has fluctuated over the past eight quarters. In Q4 2023, the company achieved the highest inventory turnover ratio of 3.28, indicating that its inventory was sold and replaced approximately 3.28 times during that quarter. This represents an improvement compared to the previous quarter's ratio of 3.05.
Despite the increase in Q4 2023, the inventory turnover ratio had been relatively stable around the 2.40-2.65 range in the preceding quarters of 2023. Comparing with the corresponding quarter in the previous year, Q4 2022 had a similar inventory turnover ratio of 2.65, suggesting consistent performance in managing inventory levels.
It is noteworthy that there was a significant improvement in inventory turnover from Q1 2023 to Q2 2023, where the ratio increased from 2.02 to 2.40. This indicates that the company became more efficient in selling and replenishing its stock during that period.
Overall, Regal Rexnord Corp's inventory turnover has shown positive fluctuations, with some quarters demonstrating improvements in inventory management efficiency. However, it would be beneficial for the company to sustain the higher turnover ratios seen in Q4 2023 to optimize its inventory levels and working capital utilization.
Peer comparison
Dec 31, 2023
Dec 31, 2023