Regal Beloit Corporation (RRX)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,033,800 | 6,180,900 | 6,353,300 | 6,574,300 | 6,250,700 | 5,887,200 | 5,562,700 | 5,143,500 | 5,217,900 | 5,189,800 | 4,757,200 | 4,294,700 | 3,810,300 | 3,374,200 | 3,239,700 | 2,986,900 | 2,907,000 | 2,864,700 | 2,878,800 | 3,118,400 |
| Total current assets | US$ in thousands | 2,751,300 | 2,955,500 | 3,001,900 | 3,265,600 | 3,384,000 | 3,372,000 | 3,475,000 | 4,109,100 | 3,000,500 | 3,046,100 | 3,097,500 | 2,972,400 | 2,722,800 | 1,836,500 | 2,084,200 | 1,926,400 | 1,851,300 | 1,752,600 | 1,675,700 | 1,834,400 |
| Total current liabilities | US$ in thousands | 1,215,700 | 1,208,600 | 1,226,900 | 1,248,500 | 1,326,400 | 1,305,400 | 1,381,100 | 1,405,800 | 1,002,200 | 1,052,800 | 1,120,800 | 1,056,600 | 1,095,300 | 768,900 | 938,800 | 871,000 | 822,000 | 830,800 | 578,400 | 580,300 |
| Working capital turnover | 3.93 | 3.54 | 3.58 | 3.26 | 3.04 | 2.85 | 2.66 | 1.90 | 2.61 | 2.60 | 2.41 | 2.24 | 2.34 | 3.16 | 2.83 | 2.83 | 2.82 | 3.11 | 2.62 | 2.49 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,033,800K ÷ ($2,751,300K – $1,215,700K)
= 3.93
The data provided indicates that Regal Beloit Corporation's working capital turnover has been fluctuating over the analyzed period. The working capital turnover ratio measures the efficiency with which a company utilizes its working capital to generate sales revenue.
From March 31, 2020, to September 30, 2021, the working capital turnover increased steadily from 2.49 to 3.16, indicating an improvement in the company's ability to generate sales relative to its working capital levels. This suggests that Regal Beloit was able to effectively manage its working capital during this time, potentially through efficient inventory management, receivables collection, and payables management.
However, from December 31, 2021, to March 31, 2024, the working capital turnover ratio showed more volatility, fluctuating between 2.34 and 3.93. The decline in the ratio observed during this period could indicate potential inefficiencies in managing working capital, which might be attributed to issues such as poor inventory control, slow collections from customers, or unfavorable payment terms with suppliers.
It is worth noting that a higher working capital turnover ratio generally indicates a more effective use of working capital in generating sales, while a lower ratio may suggest inefficiencies in working capital management. Therefore, Regal Beloit Corporation should closely monitor its working capital turnover ratio to ensure optimal utilization of resources and maintain operational efficiency.
Peer comparison
Dec 31, 2024