Regal Beloit Corporation (RRX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 393,500 | 574,000 | 688,500 | 672,800 | 611,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,215,700 | 1,326,400 | 1,002,200 | 1,095,300 | 822,000 |
| Cash ratio | 0.32 | 0.43 | 0.69 | 0.61 | 0.74 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($393,500K
+ $—K)
÷ $1,215,700K
= 0.32
The cash ratio of Regal Beloit Corporation has exhibited a declining trend over the past five years. It decreased from 0.74 as of December 31, 2020, to 0.32 as of December 31, 2024. This suggests that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over this period. A decreasing cash ratio may indicate potential liquidity challenges or the need for more efficient cash management strategies. It is important for the company to closely monitor its liquidity position and consider implementing measures to improve its cash reserves in order to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024