Regal Beloit Corporation (RRX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,344,300 | 6,388,200 | 6,370,000 | 2,544,400 | 2,351,100 |
| ROE | -0.90% | 7.65% | 3.60% | 7.38% | 10.16% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-57,400K ÷ $6,344,300K
= -0.90%
Regal Rexnord Corp's return on equity (ROE) has been displaying variability over the past five years. The ROE decreased significantly from 10.16% in 2019 to 3.33% in 2022, reflecting a decline in the company's profitability in that year. However, there was a notable improvement in ROE in 2022, reaching 7.65%.
Unfortunately, the trend reversed in 2023 with a negative ROE of -0.90%, indicating that the company's net income was insufficient to cover shareholders' equity, resulting in a loss. This suggests potential concerns about the efficiency of the company's utilization of shareholder funds. Further analysis and investigation into the factors influencing the ROE will be required to understand the underlying reasons for the fluctuations and to determine the company's overall financial health and performance.
Peer comparison
Dec 31, 2023