Regal Beloit Corporation (RRX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 393,500 | 574,000 | 688,500 | 672,800 | 611,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,215,700 | 1,326,400 | 1,002,200 | 1,095,300 | 822,000 |
| Quick ratio | 0.32 | 0.43 | 0.69 | 0.61 | 0.74 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($393,500K
+ $—K
+ $—K)
÷ $1,215,700K
= 0.32
The quick ratio of Regal Beloit Corporation has experienced fluctuations over the past five years. Starting at 0.74 on December 31, 2020, the ratio deteriorated to 0.61 by the end of 2021. There was a slight improvement to 0.69 by December 31, 2022, but this was followed by a significant decline to 0.43 on December 31, 2023. The ratio further dropped to 0.32 by the end of 2024.
Overall, the downward trend in the quick ratio indicates a potential liquidity risk for Regal Beloit Corporation. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without relying on the sale of inventory. Shareholders and stakeholders should carefully monitor this ratio as it may impact the company's ability to cover immediate liabilities with its most liquid assets.
Peer comparison
Dec 31, 2024