Regal Beloit Corporation (RRX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,384,000 | 3,000,500 | 2,808,600 | 1,851,300 | 1,607,700 |
| Total current liabilities | US$ in thousands | 1,326,400 | 1,002,200 | 1,095,300 | 822,000 | 560,500 |
| Current ratio | 2.55 | 2.99 | 2.56 | 2.25 | 2.87 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,384,000K ÷ $1,326,400K
= 2.55
The current ratio of Regal Rexnord Corp has fluctuated over the past five years. It decreased from 2.87 in 2019 to 2.25 in 2021, indicating potentially weaker short-term liquidity. However, the ratio improved in subsequent years, reaching 2.99 in 2022 and 2.55 in 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets, with a higher ratio suggesting stronger liquidity position. Regal Rexnord Corp's current ratio has generally remained above 2 over the period, indicating that the company has had more than enough current assets to cover its short-term obligations in most years, though the ratio has not been consistently increasing. Overall, the recent improvement in the current ratio suggests enhanced liquidity management, which may provide a more stable financial position for the company.
Peer comparison
Dec 31, 2023