Regal Beloit Corporation (RRX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,259,800 | 6,344,300 | 6,388,200 | 6,311,900 | 2,544,400 |
| ROE | 3.13% | -0.90% | 7.65% | 3.64% | 7.38% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $196,200K ÷ $6,259,800K
= 3.13%
Regal Beloit Corporation's return on equity (ROE) has displayed fluctuating trends over the past five years. As of December 31, 2020, the ROE stood at 7.38%, indicating a moderate level of profitability generated from shareholders' equity. However, by the end of December 31, 2021, the ROE decreased to 3.64%, suggesting a decline in the company's ability to generate returns on its equity capital.
The year 2022 saw a slight improvement in ROE, reaching 7.65%, indicating a recovery in profitability. However, in December 31, 2023, the ROE turned negative, standing at -0.90%, which indicates that the company was not utilizing its equity effectively to generate profits during that period.
By December 31, 2024, the ROE improved to 3.13%, but it still remained lower than the levels seen in 2020 and 2022. This indicates that Regal Beloit Corporation may be facing challenges in efficiently utilizing its equity to generate profits compared to previous years.
Overall, the fluctuating ROE trend suggests that Regal Beloit Corporation may need to focus on improving its profitability and efficiency in utilizing shareholders' equity to generate higher returns in the future.
Peer comparison
Dec 31, 2024