Regal Beloit Corporation (RRX)
Receivables 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 |
| Receivables | US$ in thousands | 921,600 | 918,700 | 1,013,900 | 1,028,300 | 797,400 | 816,000 | 854,800 | 832,200 | 785,800 | — | — | — | 432,000 | 472,500 | 427,200 | 464,000 | 461,400 | 491,700 | 547,800 | 545,900 |
| Receivables turnover | 11.63 | 11.06 | 8.16 | 6.02 | 6.43 | 6.29 | 5.52 | 5.13 | 4.83 | — | — | — | 8.36 | 7.55 | 10.18 | 11.77 | 12.45 | 11.97 | 11.30 | 11.65 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $10,721,600K ÷ $921,600K
= 11.63
The receivables turnover ratio for Regal Rexnord Corp has shown fluctuations over the past eight quarters. The ratio measures the company's efficiency in collecting outstanding receivables from its customers during a specific period.
In Q4 2023, the receivables turnover was 6.78, indicating that the company collected its outstanding receivables approximately 6.78 times throughout that quarter. This was an increase from Q3 2023, where the ratio was 6.41.
Looking at the trend over the last year, the receivables turnover has generally been in the range of 5 to 6.78, showing variability but maintaining a relatively consistent level of collections efficiency.
A higher receivables turnover ratio typically indicates that the company is efficient in collecting payments from customers, which is a positive sign of effective credit management. However, a significant increase in the ratio could also suggest overly strict credit policies that may lead to potential loss of sales.
Conversely, a lower turnover ratio may indicate issues with collecting receivables promptly, potentially leading to cash flow problems. It is essential for Regal Rexnord Corp to monitor this ratio closely to ensure efficient management of its accounts receivables and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2023