Regal Beloit Corporation (RRX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 196,200 | -57,400 | 488,900 | 229,600 | 187,700 |
| Total assets | US$ in thousands | 14,033,700 | 15,431,400 | 10,268,900 | 10,281,600 | 4,589,000 |
| ROA | 1.40% | -0.37% | 4.76% | 2.23% | 4.09% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $196,200K ÷ $14,033,700K
= 1.40%
Based on the data provided, Regal Beloit Corporation's return on assets (ROA) has shown fluctuations over the past few years. In December 31, 2020, the ROA was 4.09%, indicating that the company generated $0.0409 in profit for every dollar of assets it owns. However, by December 31, 2021, the ROA decreased to 2.23%, suggesting a decline in asset efficiency and profitability.
In December 31, 2022, the ROA improved to 4.76%, showcasing a positive trend in utilizing its assets to generate profit. This was a significant improvement from the previous year and reflected better management of resources.
Unfortunately, by December 31, 2023, the ROA turned negative at -0.37%, implying that the company incurred losses relative to its asset base. This could be a concerning sign for investors and stakeholders as it indicates inefficiencies in asset utilization or declining profitability.
As of December 31, 2024, the ROA recovered slightly to 1.40%, but it still remained below the levels seen in 2020 and 2022. This suggests that Regal Beloit Corporation may need to focus on improving its asset management and operational efficiency to enhance profitability in the future.
Overall, the fluctuating trend in ROA for Regal Beloit Corporation indicates the company's varying ability to generate profits from its assets over the analyzed period. It is essential for the company to closely monitor its asset utilization and profitability metrics to ensure sustainable financial performance in the long term.
Peer comparison
Dec 31, 2024