Regal Beloit Corporation (RRX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 630,000 | 377,100 | 690,400 | 332,400 | 280,100 |
| Total assets | US$ in thousands | 14,033,700 | 15,431,400 | 10,268,900 | 10,281,600 | 4,589,000 |
| Operating ROA | 4.49% | 2.44% | 6.72% | 3.23% | 6.10% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $630,000K ÷ $14,033,700K
= 4.49%
Regal Beloit Corporation's operating return on assets (Operating ROA) has shown fluctuations over the past five years. As of December 31, 2020, the Operating ROA stood at 6.10%, indicating that the company generated 6.10 cents of operating income for every dollar of assets it utilized during that period.
However, by December 31, 2021, the Operating ROA decreased to 3.23%, signaling a decline in the company's ability to generate operating income relative to its asset base. This decrease may suggest challenges in operational efficiency or profitability.
The following year, by December 31, 2022, Regal Beloit Corporation saw a notable improvement in its Operating ROA, which increased to 6.72%. This upward trend indicates a more efficient use of assets to generate operating income compared to the previous year.
In the subsequent years, the Operating ROA fluctuated: it dropped to 2.44% by December 31, 2023, before rebounding to 4.49% by December 31, 2024. These fluctuations suggest potential changes in the company's operating performance and asset management strategies.
Overall, the analysis of Regal Beloit Corporation's Operating ROA highlights the importance of monitoring trends in operating efficiency and asset utilization to assess the company's operational effectiveness and financial performance over time.
Peer comparison
Dec 31, 2024