Regal Beloit Corporation (RRX)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,033,800 | 6,250,700 | 5,217,900 | 3,810,300 | 2,907,000 |
| Total assets | US$ in thousands | 14,033,700 | 15,431,400 | 10,268,900 | 10,281,600 | 4,589,000 |
| Total asset turnover | 0.43 | 0.41 | 0.51 | 0.37 | 0.63 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,033,800K ÷ $14,033,700K
= 0.43
Regal Beloit Corporation's total asset turnover ratio has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The ratio declined from 0.63 in 2020 to 0.37 in 2021, indicating that the company generated $0.37 in net sales for every $1 of total assets. This drop suggests a potential inefficiency in asset utilization or a decrease in sales relative to the size of assets.
In 2022, the total asset turnover ratio improved to 0.51, showing that the company was able to increase its revenue generation efficiency compared to the previous year. However, the ratio decreased again to 0.41 in 2023, indicating a relative decline in sales generated per dollar of assets.
By the end of 2024, the total asset turnover ratio increased slightly to 0.43. While this indicates a slight improvement in asset utilization efficiency compared to the previous year, the ratio remains below the initial level observed in 2020.
Overall, the trend in Regal Beloit Corporation's total asset turnover ratio suggests fluctuations in the company's ability to generate sales relative to its total assets. It is important for the company to focus on optimizing its asset utilization to improve efficiency and profitability in the future.
Peer comparison
Dec 31, 2024