Regal Beloit Corporation (RRX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,377,000 | 1,989,700 | 1,913,600 | 840,400 | 1,136,900 |
| Total assets | US$ in thousands | 15,431,400 | 10,268,900 | 10,367,400 | 4,589,000 | 4,430,700 |
| Debt-to-assets ratio | 0.41 | 0.19 | 0.18 | 0.18 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,377,000K ÷ $15,431,400K
= 0.41
The debt-to-assets ratio of Regal Rexnord Corp has fluctuated over the past five years. As of December 31, 2023, the ratio stands at 0.41, indicating that 41% of the company's assets are funded by debt. This represents a significant increase compared to the previous year, where the ratio was at 0.20.
The upward trend in the debt-to-assets ratio suggests that the company has been relying more on debt to finance its operations and investments. This could potentially signal increased financial leverage and risk, as a higher ratio indicates a larger proportion of debt in the company's capital structure.
It is worth noting that the ratios for the years 2021, 2022, and 2023 have been higher compared to the ratios for 2019 and 2020, indicating a potential shift in the company's financing strategy towards more debt funding. This change may have implications for the company's financial stability and ability to service its debt obligations in the long run.
Peer comparison
Dec 31, 2023