Regal Beloit Corporation (RRX)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -4,700 | 607,800 | 304,300 | 244,000 | 300,100 |
| Revenue | US$ in thousands | 5,732,000 | 5,128,000 | 3,737,000 | 2,864,300 | 3,230,400 |
| Pretax margin | -0.08% | 11.85% | 8.14% | 8.52% | 9.29% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-4,700K ÷ $5,732,000K
= -0.08%
Regal Rexnord Corp's pretax margin has shown fluctuations over the past five years. In 2023, the company reported a negative pretax margin of -0.03%, indicating that its expenses exceeded its revenue before accounting for taxes. This is a significant decline compared to the previous year when the pretax margin was 11.76%, reflecting a substantial decrease in profitability.
Looking back further, in 2022, the pretax margin stood at 7.47%, showing a moderate level of profitability, which was slightly lower than the 8.62% pretax margin in 2021. The highest pretax margin in recent years was recorded in 2019 at 9.38%.
Overall, the downward trend in pretax margin from 2019 to 2023 raises concerns about Regal Rexnord Corp's ability to effectively manage its expenses and generate sufficient revenue to cover its operating costs before taxes. This trend may indicate potential financial challenges that the company needs to address to improve its profitability in the future.
Peer comparison
Dec 31, 2023