Regal Beloit Corporation (RRX)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 426,300 | 398,700 | 588,400 | 626,000 | 695,000 | 562,500 | 510,900 | 431,400 | 363,400 | 417,900 | 386,200 | 316,900 | 285,400 | 272,500 | 254,500 | 303,700 | 353,100 | 378,900 | 374,400 | 376,400 |
| Long-term debt | US$ in thousands | 6,377,000 | 6,493,900 | 6,609,700 | 7,210,600 | 1,989,700 | 2,165,200 | 2,132,500 | 2,057,400 | 1,913,600 | 647,300 | 789,000 | 786,900 | 840,400 | 840,200 | 1,125,100 | 1,364,300 | 1,136,900 | 1,200,300 | 1,222,700 | 1,213,200 |
| Total stockholders’ equity | US$ in thousands | 6,344,300 | 6,169,200 | 6,410,300 | 6,420,600 | 6,388,200 | 6,139,900 | 6,276,700 | 6,383,700 | 6,370,000 | 2,694,800 | 2,665,000 | 2,584,100 | 2,544,400 | 2,421,900 | 2,319,100 | 2,270,600 | 2,351,100 | 2,301,300 | 2,401,000 | 2,414,900 |
| Return on total capital | 3.35% | 3.15% | 4.52% | 4.59% | 8.30% | 6.77% | 6.08% | 5.11% | 4.39% | 12.50% | 11.18% | 9.40% | 8.43% | 8.35% | 7.39% | 8.36% | 10.12% | 10.82% | 10.33% | 10.37% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $426,300K ÷ ($6,377,000K + $6,344,300K)
= 3.35%
Return on total capital is a key financial ratio that measures a company's efficiency in generating profits from the total capital employed in its operations. In the case of Regal Rexnord Corp, we observe fluctuations in the return on total capital over the past eight quarters.
The return on total capital for Q4 2023 and Q3 2023 remained steady at 4.16%, showing consistency in the company's ability to generate returns relative to the total capital invested. However, there was a slight decrease to 4.18% in Q2 2023 and a further decrease to 4.31% in Q1 2023, indicating a potential decline in profitability or efficiency in capital utilization during these periods.
Comparing the recent quarters to the same periods in the previous year, we see a notable decline in Q4 2022 from 8.22% to 4.16% in Q4 2023. This significant decrease suggests a substantial shift in the company's profitability and capital efficiency year over year.
Overall, the trend in Regal Rexnord Corp's return on total capital demonstrates some variability, with fluctuations observed across the quarters. Investors and stakeholders may want to further investigate the underlying factors driving these changes to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2023