Regal Beloit Corporation (RRX)
Payables 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 |
| Payables | US$ in thousands | 549,400 | 588,000 | 678,500 | 666,700 | 497,700 | 548,200 | 652,800 | 641,300 | 643,800 | 512,700 | 461,400 | 412,300 | 360,100 | 363,800 | 342,600 | 340,300 | 337,000 | 362,300 | 416,700 | 429,600 |
| Payables turnover | 8.53 | 6.60 | 5.72 | 5.64 | 8.04 | 7.69 | 5.79 | 5.24 | 4.50 | 5.00 | 5.35 | 5.55 | 6.23 | 7.04 | 7.20 | 7.41 | 7.36 | 7.13 | 6.46 | 6.44 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,687,000K ÷ $549,400K
= 8.53
The payables turnover ratio for Regal Rexnord Corp has exhibited fluctuations over the past eight quarters. The ratio, which measures the efficiency of the company in managing its accounts payable, indicates how many times during a period the company paid off its average accounts payable balance.
Based on the provided data, we observe an overall increasing trend in the payables turnover ratio from Q1 2022 to Q4 2023. The ratio has increased from 4.73 in Q1 2022 to 7.61 in Q4 2023.
A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which may be a positive sign indicating good relationships with suppliers or effective working capital management. Conversely, a lower ratio could indicate that the company is taking longer to pay its suppliers, potentially leading to strained supplier relationships or missed opportunities for early payment discounts.
The quarterly fluctuations in the payables turnover ratio may be influenced by various factors such as changes in payment terms with suppliers, seasonal variations in the business, or shifts in the company's working capital management strategies.
Overall, the increasing trend in Regal Rexnord Corp's payables turnover ratio over the past quarters indicates an improvement in the company's efficiency in managing its payables. However, it would be beneficial to assess the trend in conjunction with other financial ratios and qualitative factors to gain a more comprehensive understanding of the company's financial performance and supplier relationships.
Peer comparison
Dec 31, 2023