Regal Beloit Corporation (RRX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.24 | 2.43 | 1.61 | 1.63 | 1.80 |
Regal Beloit Corporation demonstrates strong solvency ratios, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all years from 2020 to 2024. This signifies that the company has minimal debt relative to its assets, capital, and equity, reflecting a low level of financial risk and a healthy financial position.
Furthermore, the financial leverage ratio, which shows the proportion of a company's assets that are financed with debt, decreased from 1.80 in 2020 to 1.61 in 2022, indicating that the company became less leveraged during this period. However, there was an increase in the financial leverage ratio to 2.43 in 2023, before declining to 2.24 in 2024. This fluctuation suggests that the company may have increased its debt levels in 2023 but managed to reduce them by 2024.
Overall, the trend of low debt ratios and the variations in the financial leverage ratio imply that Regal Beloit Corporation has maintained a conservative approach to managing its debt and leverage, positioning itself well in terms of solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.62 | 0.87 | 8.05 | 6.13 | 7.32 |
The interest coverage ratio for Regal Beloit Corporation has shown some fluctuations over the years. In 2020, the company had an interest coverage ratio of 7.32, indicating that it was able to cover its interest expenses 7.32 times over with its operating income.
However, in 2021, the interest coverage ratio decreased to 6.13, suggesting a slight decline in the company's ability to cover interest expenses. In 2022, the ratio improved to 8.05, indicating a stronger ability to cover interest costs compared to the previous year.
The years 2023 and 2024 saw a significant decline in the interest coverage ratio to 0.87 and 1.62, respectively. These lower ratios may raise concerns about the company's ability to meet its interest payment obligations with its operating income during those periods.
Overall, the trend in Regal Beloit Corporation's interest coverage ratio shows some fluctuations, with some years demonstrating stronger coverage levels than others. It is important for the company to closely monitor and manage its interest expenses and operating income to ensure sustainable financial health and stability.