Regal Beloit Corporation (RRX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 574,000 | 688,500 | 672,800 | 611,300 | 331,400 |
| Short-term investments | US$ in thousands | — | — | — | — | 8,800 |
| Receivables | US$ in thousands | 921,600 | 797,400 | 785,800 | 432,000 | 461,400 |
| Total current liabilities | US$ in thousands | 1,326,400 | 1,002,200 | 1,095,300 | 822,000 | 560,500 |
| Quick ratio | 1.13 | 1.48 | 1.33 | 1.27 | 1.43 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($574,000K
+ $—K
+ $921,600K)
÷ $1,326,400K
= 1.13
The quick ratio of Regal Rexnord Corp has shown some fluctuation over the past five years. The quick ratio decreased from 1.65 in December 2019 to 1.31 in December 2023. The downward trend indicates a potential decrease in the company's ability to meet its short-term obligations using its most liquid assets.
Furthermore, the quick ratio was relatively stable around the range of 1.40 to 1.46 from 2021 to 2022, before experiencing a notable decline in 2023. This may raise concerns about the company's liquidity position and its ability to cover immediate liabilities without relying on inventory and other less liquid assets.
It is recommended for stakeholders to further investigate the factors contributing to the fluctuation in the quick ratio to assess the company's short-term liquidity risk and financial health.
Peer comparison
Dec 31, 2023