Regal Beloit Corporation (RRX)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 377,100 | 690,400 | 358,300 | 278,000 | 351,100 |
| Revenue | US$ in thousands | 5,732,000 | 5,128,000 | 3,737,000 | 2,864,300 | 3,230,400 |
| Operating profit margin | 6.58% | 13.46% | 9.59% | 9.71% | 10.87% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $377,100K ÷ $5,732,000K
= 6.58%
The operating profit margin of Regal Rexnord Corp has shown fluctuations over the last five years. In 2023, the operating profit margin decreased to 8.48% from 13.25% in 2022, indicating a decline in the company's ability to generate profits from its core operations.
Comparing to the previous years, the operating profit margin in 2023 is lower than the 2022 figure, but higher than that of 2021 and 2019. This suggests that while the company's profitability decreased compared to the previous year, it has managed to maintain a relatively stronger operating profit margin compared to two years prior.
The declining trend in operating profit margin from 13.25% in 2022 to 8.48% in 2023 warrants further investigation into the factors influencing this decrease, such as changes in operating costs, pricing strategies, or revenue streams. Monitoring and analyzing these factors will be crucial for Regal Rexnord Corp to improve and sustain its profitability in the future.
Peer comparison
Dec 31, 2023