Regal Beloit Corporation (RRX)

Short-term

Turnover ratios

Activity ratios provide valuable insights into how efficiently a company manages its assets and operations. Let's analyze the activity ratios of Regal Beloit Corporation based on the provided data.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory in a given period. Regal Beloit's inventory turnover has been fluctuating over the years, ranging from a high of 3.49 in March 2020 to a low of 2.02 in March 2023.
- A decreasing trend in inventory turnover may indicate issues with sales or excess inventory levels, potentially tying up capital.

2. Receivables Turnover:
- Unfortunately, the data does not provide information on Regal Beloit's receivables turnover, which measures how efficiently the company collects payments from its customers.
- A higher receivables turnover ratio generally indicates that the company is efficient in collecting cash from credit sales.

3. Payables Turnover:
- Similar to receivables turnover, data on payables turnover is not available for analysis. Payables turnover assesses how effectively the company manages its payments to suppliers.
- A higher payables turnover implies the company takes longer to pay its suppliers, potentially improving cash flow.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively a company generates revenue from its working capital. Regal Beloit's working capital turnover has varied, with a peak of 3.93 in December 2024.
- A higher working capital turnover indicates that the company efficiently utilizes its working capital to generate sales, reflecting strong operational efficiency.

In conclusion, while the inventory turnover and working capital turnover ratios provide insights into Regal Beloit's operational efficiency and capital utilization, the inability to analyze receivables and payables turnover limits a comprehensive assessment of the company's overall activity performance.

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Average number of days

Based on the provided data, we can analyze Regal Beloit Corporation's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The trend for the DOH ratio shows fluctuations over the years, with a general increase observed from March 31, 2020, to March 31, 2024.
- The DOH ratio increased from 104.49 days on March 31, 2020, to 180.80 days on March 31, 2023, then decreased to 111.17 days by December 31, 2023.
- The most recent data as of December 31, 2024, indicates a DOH of 116.54 days, which is lower compared to the peak on March 31, 2023.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available or provided for the entire period from March 31, 2020, to December 31, 2024. This makes it challenging to analyze the collection efficiency or the company's ability to convert sales into cash during these periods.

3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not given for the specified periods from March 31, 2020, to December 31, 2024. As a result, an analysis of the company's payment practices or efficiency in managing payables cannot be presented based on the data provided.

In conclusion, the analysis of Regal Beloit Corporation's activity ratios based on the available data shows various trends in the inventory management aspect, with fluctuations in the DOH ratio over the years. However, due to the lack of information on DSO and payables, a comprehensive assessment of the company's overall operating cycle efficiency is limited.

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Long-term

The Fixed Asset Turnover ratio for Regal Beloit Corporation has shown fluctuations over the years. It increased steadily from June 30, 2020, to June 30, 2021, indicating more efficient utilization of fixed assets. However, there was a significant decline in the ratio from June 30, 2021, to December 31, 2021, followed by a fluctuating trend with some periods showing low values, such as September 30, 2021, and December 31, 2021. The ratio picked up again by March 31, 2023, showing a substantial increase, but then dropped significantly in subsequent periods. Notably, the ratio for the last reported period, December 31, 2023, and the following periods are not available.

Meanwhile, the Total Asset Turnover ratio also experienced fluctuations. It declined from March 31, 2020, to December 31, 2021, indicating a decrease in asset efficiency during this period. The ratio reached its lowest point on March 31, 2023, but then showed an increasing trend until December 31, 2023. Since then, the ratio has been relatively stable within a certain range, indicating a moderate level of asset turnover efficiency.

Overall, the trends in both ratios suggest that Regal Beloit Corporation's efficiency in generating sales from its fixed assets and total assets has been inconsistent over the past few years, with periods of improvement followed by declines or fluctuations. This highlights the importance of closely monitoring and managing the company's asset utilization to enhance operational performance and profitability.