Regal Beloit Corporation (RRX)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -57,400 | 488,900 | 229,600 | 187,700 | 238,900 |
| Revenue | US$ in thousands | 5,732,000 | 5,128,000 | 3,737,000 | 2,864,300 | 3,230,400 |
| Net profit margin | -1.00% | 9.53% | 6.14% | 6.55% | 7.40% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-57,400K ÷ $5,732,000K
= -1.00%
Regal Rexnord Corp experienced a decline in net profit margin over the five-year period analyzed. The company's net profit margin stood at -0.92% as of December 31, 2023, reflecting a negative profitability position, which may be concerning to stakeholders. This negative net profit margin suggests that the company's expenses exceeded its revenues, resulting in a loss for the period.
Comparing this to previous years, Regal Rexnord Corp had a notably higher net profit margin of 9.37% as of December 31, 2022, followed by 5.51% as of January 1, 2022, 6.51% as of January 2, 2021, and 7.38% as of December 28, 2019. These figures demonstrate a general downward trend in profitability over the five-year period, indicating potential challenges in managing costs or generating sufficient revenue to offset expenses.
Overall, the negative net profit margin in 2023 raises red flags regarding the company's financial health and operational efficiency. It may be crucial for Regal Rexnord Corp to assess its cost structure, revenue streams, and overall business strategy to improve profitability and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2023