Regal Beloit Corporation (RRX)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 15,431,400 | 10,268,900 | 10,367,400 | 4,589,000 | 4,430,700 |
| ROA | -0.37% | 4.76% | 2.21% | 4.09% | 5.39% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-57,400K ÷ $15,431,400K
= -0.37%
Regal Rexnord Corp's return on assets (ROA) has exhibited variability over the past five years. In 2019, the company achieved the highest ROA at 5.39%, indicating that it generated $5.39 in profit for every $100 in assets. Subsequently, ROA decreased to 4.13% in 2021 before experiencing a slight increase to 4.76% in 2022. However, there was a significant decline in ROA to 2.04% in 2022 and further to -0.37% in 2023.
The negative ROA figure in 2023 implies that the company experienced a negative return on its assets, potentially indicating operational inefficiencies or poor financial performance. The decreasing trend in ROA over the years may suggest challenges in utilizing the company's assets effectively to generate profits.
Further analysis is needed to understand the factors contributing to the decline in ROA and to determine potential strategies for improving asset utilization and overall profitability in the future.
Peer comparison
Dec 31, 2023