Regal Beloit Corporation (RRX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,732,000 | 5,128,000 | 3,737,000 | 2,864,300 | 3,230,400 |
| Total assets | US$ in thousands | 15,431,400 | 10,268,900 | 10,367,400 | 4,589,000 | 4,430,700 |
| Total asset turnover | 0.37 | 0.50 | 0.36 | 0.62 | 0.73 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,732,000K ÷ $15,431,400K
= 0.37
The total asset turnover ratio for Regal Rexnord Corp has fluctuated over the past five years, indicating varying levels of efficiency in generating sales revenue from its total assets.
In 2019, the total asset turnover ratio was 0.73, suggesting that the company generated $0.73 in sales for every $1 of total assets. Over the subsequent years, there was a gradual decline in this ratio, with values of 0.63 in 2021, 0.37 in 2022, and 0.41 in 2023.
The declining trend in total asset turnover may indicate inefficiencies in asset utilization or a decrease in sales revenue relative to the size of the asset base. It could also suggest that the company's investment in assets may not be generating the expected level of sales.
Overall, the decreasing total asset turnover ratio for Regal Rexnord Corp warrants further investigation into the company's operational efficiency, asset management strategies, and sales performance to identify areas for improvement and enhance overall financial performance.
Peer comparison
Dec 31, 2023