Regal Beloit Corporation (RRX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,751,300 | 3,384,000 | 3,000,500 | 2,722,800 | 1,851,300 |
| Total current liabilities | US$ in thousands | 1,215,700 | 1,326,400 | 1,002,200 | 1,095,300 | 822,000 |
| Current ratio | 2.26 | 2.55 | 2.99 | 2.49 | 2.25 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,751,300K ÷ $1,215,700K
= 2.26
The current ratio of Regal Beloit Corporation has shown a generally positive trend over the years, indicating the company's ability to cover its short-term liabilities with its current assets.
As of December 31, 2020, the current ratio was 2.25, suggesting the company had $2.25 in current assets for every $1 in current liabilities. By December 31, 2021, the ratio improved to 2.49, indicating further strengthening of the company's liquidity position.
In the following years, the current ratio continued to increase significantly, reaching 2.99 by December 31, 2022. This suggests a notable improvement in Regal Beloit's ability to meet its short-term obligations.
However, by December 31, 2023, the current ratio decreased slightly to 2.55, potentially signaling a slight decrease in liquidity compared to the previous year. It is important for the company to monitor this trend to ensure it maintains a healthy liquidity position.
As of December 31, 2024, the current ratio decreased further to 2.26, which could indicate a potential challenge in maintaining sufficient current assets to cover short-term liabilities.
Overall, while the current ratio fluctuations occurred over the years, Regal Beloit Corporation has generally maintained a solid liquidity position, with the ratio consistently above 2 in recent years.
Peer comparison
Dec 31, 2024