Regal Beloit Corporation (RRX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 574,000 | 540,600 | 659,600 | 1,143,300 | 688,500 | 723,600 | 702,500 | 624,700 | 672,800 | 328,600 | 618,500 | 566,400 | 611,300 | 487,500 | 432,200 | 604,500 | 331,400 | 293,000 | 291,300 | 264,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.43 | 0.41 | 0.48 | 0.81 | 0.69 | 0.69 | 0.63 | 0.59 | 0.61 | 0.43 | 0.66 | 0.65 | 0.74 | 0.59 | 0.75 | 1.04 | 0.59 | 0.50 | 0.45 | 0.39 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($574,000K
+ $—K)
÷ $1,326,400K
= 0.43
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. It is calculated by dividing the total cash and cash equivalents by the total current liabilities. A higher cash ratio indicates a better ability to cover short-term obligations.
Analyzing Regal Rexnord Corp's cash ratio over the past eight quarters, we observe fluctuations in the values. In the most recent quarter, Q4 2023, the cash ratio stands at 0.62, which indicates that the company has $0.62 of cash and cash equivalents for every dollar of current liabilities. This represents a slight decrease from the previous quarter's ratio of 0.59 in Q3 2023.
Looking back further, we see that the cash ratio was notably higher in Q1 2023 at 0.96, implying a stronger liquidity position during that period. However, there has been some variability in the ratios throughout the year, with values ranging from 0.75 to 0.85 in the quarters of 2022.
Overall, the trend in Regal Rexnord Corp's cash ratio reflects some volatility in the company's ability to cover its short-term obligations with its available cash reserves. It would be advisable for stakeholders to closely monitor future fluctuations in the cash ratio to assess the company's liquidity position and financial stability.
Peer comparison
Dec 31, 2023