Regal Beloit Corporation (RRX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 377,100 | 351,800 | 546,100 | 589,400 | 690,400 | 557,600 | 504,600 | 424,900 | 356,500 | 411,800 | 380,900 | 311,600 | 280,100 | 267,600 | 250,400 | 300,500 | 351,100 | 379,200 | 375,800 | 379,400 |
| Total assets | US$ in thousands | 15,431,400 | 15,365,000 | 15,857,800 | 16,547,400 | 10,268,900 | 10,249,000 | 10,458,500 | 10,471,100 | 10,367,400 | 4,485,000 | 4,773,700 | 4,627,200 | 4,589,000 | 4,479,400 | 4,408,100 | 4,585,900 | 4,430,700 | 4,478,300 | 4,660,300 | 4,705,900 |
| Operating ROA | 2.44% | 2.29% | 3.44% | 3.56% | 6.72% | 5.44% | 4.82% | 4.06% | 3.44% | 9.18% | 7.98% | 6.73% | 6.10% | 5.97% | 5.68% | 6.55% | 7.92% | 8.47% | 8.06% | 8.06% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $377,100K ÷ $15,431,400K
= 2.44%
Based on the provided data, Regal Rexnord Corp's operating return on assets (operating ROA) has shown a declining trend over the past eight quarters. The operating ROA decreased from 6.73% in Q4 2022 to 3.43% in Q4 2023.
This indicates that the company's ability to generate operating profits from its assets has weakened over time. A lower operating ROA suggests that the company is less efficient in using its assets to generate operating income.
Further analysis is recommended to understand the factors contributing to this decline in operating ROA, such as changes in business operations, cost structures, or revenue streams. It is essential for the company's management to address these underlying issues to improve operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023