Regal Beloit Corporation (RRX)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 116.59 | 111.17 | 137.53 | 148.25 | 120.08 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 116.59 | 111.17 | 137.53 | 148.25 | 120.08 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 116.59 + — – —
= 116.59
The cash conversion cycle for Regal Beloit Corporation has shown some fluctuations over the past five years.
- In 2020, the company's cash conversion cycle was 120.08 days, indicating the number of days it takes for Regal Beloit to convert its investments in inventory and other resources into cash flows from sales.
- This figure increased to 148.25 days in 2021, suggesting a delay in the conversion process.
- In 2022, there was a slight improvement as the cash conversion cycle decreased to 137.53 days.
- By the end of 2023, the cash conversion cycle improved significantly, dropping to 111.17 days, which implies more efficient management of working capital.
- In 2024, the cycle increased slightly to 116.59 days, still showing a better performance compared to 2021.
Overall, although there were fluctuations in the cash conversion cycle, the trend indicates that Regal Beloit Corporation has been able to manage its working capital more efficiently in recent years, leading to a quicker conversion of investments into cash. This reflects positively on the company's operational effectiveness and liquidity management.
Peer comparison
Dec 31, 2024