Regal Beloit Corporation (RRX)
Working capital 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 current assets | US$ in thousands | 3,384,000 | 3,000,500 | 2,808,600 | 1,851,300 | 1,607,700 |
| Total current liabilities | US$ in thousands | 1,326,400 | 1,002,200 | 1,095,300 | 822,000 | 560,500 |
| Working capital turnover | 2.79 | 2.57 | 2.18 | 2.78 | 3.08 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,732,000K ÷ ($3,384,000K – $1,326,400K)
= 2.79
The working capital turnover ratio for Regal Rexnord Corp has shown fluctuations over the past five years. It increased from 2.82 in 2021 to 3.04 in 2023, indicating that the company is generating more revenue relative to its working capital investments. This improvement suggests that Regal Rexnord Corp is using its working capital more efficiently to generate sales.
However, it is important to note that the ratio decreased in 2022 to 2.61 before increasing again in 2023. Despite the fluctuation, the company's working capital turnover ratio remains above 2 for all years, indicating that Regal Rexnord Corp has been able to effectively leverage its working capital to support its revenue generation activities.
Overall, the trend in the working capital turnover ratio suggests that Regal Rexnord Corp has been successful in managing its working capital effectively over the past five years, with a generally positive impact on revenue generation.
Peer comparison
Dec 31, 2023