Regal Beloit Corporation (RRX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.31% | 33.07% | 32.00% | 28.49% | 27.82% |
| Operating profit margin | 10.44% | 6.03% | 13.23% | 8.72% | 9.64% |
| Pretax margin | 4.11% | -0.03% | 11.76% | 7.47% | 8.62% |
| Net profit margin | 3.25% | -0.92% | 9.37% | 6.03% | 6.46% |
Over the five-year period from 2020 to 2024, Regal Beloit Corporation has shown a consistent improvement in its profitability ratios:
1. Gross Profit Margin:
- The gross profit margin has increased steadily from 27.82% in 2020 to 36.31% in 2024. This indicates the company's ability to control production costs and generate a higher percentage of revenue as gross profit.
2. Operating Profit Margin:
- The operating profit margin fluctuated initially but showed a significant improvement in 2022, reaching 13.23%. However, it dropped in 2023 before recovering to 10.44% in 2024. This margin reflects the company's efficiency in managing its operating expenses relative to its revenue.
3. Pre-Tax Margin:
- The pre-tax margin improved from 8.62% in 2020 to 11.76% in 2022, demonstrating an increase in profitability before accounting for taxes. However, there was a significant decrease in 2023 to -0.03%, likely due to certain factors impacting the company's pre-tax earnings. The margin recovered slightly to 4.11% in 2024.
4. Net Profit Margin:
- The net profit margin experienced fluctuations, with a peak of 9.37% in 2022. However, in 2023, the margin turned negative at -0.92%, indicating that the company incurred a net loss for that year. The margin improved to 3.25% in 2024, but it is below the levels seen in 2022.
Overall, Regal Beloit Corporation has shown improvements in its gross profit margin and some profitability ratios, although there were fluctuations and challenges in certain years. The company's ability to sustain or further enhance these margins will be crucial for its long-term financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.49% | 2.44% | 6.72% | 3.23% | 6.10% |
| Return on assets (ROA) | 1.40% | -0.37% | 4.76% | 2.23% | 4.09% |
| Return on total capital | 10.35% | 5.94% | 10.99% | 5.87% | 11.45% |
| Return on equity (ROE) | 3.13% | -0.90% | 7.65% | 3.64% | 7.38% |
Regal Beloit Corporation's profitability ratios fluctuated over the past five years.
- Operating return on assets (Operating ROA) ranged from 2.44% in December 31, 2023, to 6.72% in December 31, 2022, indicating varying efficiency in generating profits from its assets over this period.
- Return on assets (ROA) also showed volatility, with a low of -0.37% in December 31, 2023, and a high of 4.76% in December 31, 2022. This implies inconsistent performance in generating profits relative to the total assets employed.
- Return on total capital fluctuated between 5.87% in December 31, 2021, and 11.45% in December 31, 2020, showcasing fluctuations in the ability to generate returns from the total capital invested in the company.
- Return on equity (ROE) varied from -0.90% in December 31, 2023, to 7.65% in December 31, 2022. This suggests fluctuations in the ability to generate returns for the shareholders' equity invested in the company over the period.
Overall, the profitability ratios of Regal Beloit Corporation indicate varying levels of efficiency and effectiveness in generating profits from its assets, total capital, and equity over the five-year period.