Regal Beloit Corporation (RRX)
Working capital 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 |
| Total current assets | US$ in thousands | 3,384,000 | 3,372,000 | 3,475,000 | 4,109,100 | 3,000,500 | 3,046,100 | 3,097,500 | 2,972,400 | 2,808,600 | 1,836,500 | 2,084,200 | 1,926,400 | 1,851,300 | 1,752,600 | 1,675,700 | 1,834,400 | 1,607,700 | 1,667,900 | 1,802,900 | 1,836,500 |
| Total current liabilities | US$ in thousands | 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 | 560,500 | 589,200 | 645,300 | 676,500 |
| Working capital turnover | 5.21 | 4.92 | 3.95 | 2.29 | 2.57 | 2.57 | 2.39 | 2.23 | 2.21 | 3.16 | 2.82 | 2.81 | 3.51 | 3.87 | 3.96 | 4.36 | 5.48 | 5.46 | 5.35 | 5.48 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,721,600K ÷ ($3,384,000K – $1,326,400K)
= 5.21
Regal Rexnord Corp's working capital turnover has shown fluctuations over the past eight quarters. The company's working capital turnover ratio has ranged from a low of 1.90 in Q1 2023 to a high of 3.04 in Q4 2023. This indicates that the company is generating sales revenue relative to its working capital at varying rates.
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio signifies that the company is effectively using its working capital to generate sales, while a lower ratio may indicate inefficiencies in managing working capital.
Regal Rexnord Corp's working capital turnover has generally been on an upward trend since Q1 2023, with a noticeable improvement from Q2 2023 onwards. This suggests that the company has been improving its efficiency in generating sales revenue relative to its working capital in recent quarters.
Overall, the trend in Regal Rexnord Corp's working capital turnover indicates that the company has been making progress in optimizing its working capital management and generating sales efficiently. However, it is essential for the company to continue to monitor and maintain this trend to ensure sustainable growth and profitability.
Peer comparison
Dec 31, 2023