Regal Beloit Corporation (RRX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 647,700 | 377,100 | 702,300 | 370,500 | 291,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,259,800 | 6,344,300 | 6,388,200 | 6,311,900 | 2,544,400 |
| Return on total capital | 10.35% | 5.94% | 10.99% | 5.87% | 11.45% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $647,700K ÷ ($—K + $6,259,800K)
= 10.35%
Regal Beloit Corporation's return on total capital has displayed fluctuations over the past five years, ranging from a high of 11.45% in December 2020 to a low of 5.87% in December 2021. The return on total capital improved in December 2022 to 10.99% but decreased again in December 2023 to 5.94%. However, there was a slight recovery by December 2024, with the return on total capital rising to 10.35%.
These variations in return on total capital suggest changes in the company's efficiency in generating returns from its total capital employed. It may indicate shifts in operational performance, capital utilization, or profitability levels within the organization. Further analysis would be necessary to understand the specific factors driving these fluctuations and to determine the overall effectiveness of Regal Beloit Corporation in utilizing its total capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024