Regal Beloit Corporation (RRX)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 15,431,400 | 15,365,000 | 15,857,800 | 16,547,400 | 10,268,900 | 10,249,000 | 10,458,500 | 10,471,100 | 10,367,400 | 4,485,000 | 4,773,700 | 4,627,200 | 4,589,000 | 4,479,400 | 4,408,100 | 4,585,900 | 4,430,700 | 4,478,300 | 4,660,300 | 4,705,900 |
| Debt-to-assets ratio | 0.41 | 0.42 | 0.42 | 0.44 | 0.19 | 0.21 | 0.20 | 0.20 | 0.18 | 0.14 | 0.17 | 0.17 | 0.18 | 0.19 | 0.26 | 0.30 | 0.26 | 0.27 | 0.26 | 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 shown a fluctuating trend over the past 8 quarters. The ratio has ranged from 0.20 to 0.44 during this period, with the highest value recorded in Q1 2023 and the lowest in Q4 2022. On average, the company has maintained a moderate level of debt relative to its total assets, indicating that a significant portion of its assets are financed through debt.
The increasing trend from Q4 2022 to Q1 2023 shows a slight deterioration in the company's debt management, as a higher proportion of assets were funded by debt during this period. However, the ratio stabilized around 0.42 in the following quarters, signaling a more consistent debt-to-assets position.
It is important for investors and stakeholders to closely monitor the company's debt-to-assets ratio to assess its leverage and financial risk. A higher ratio suggests higher financial risk, as more assets are financed through debt, potentially leading to increased interest payments and constraints on future investments. Conversely, a lower ratio indicates a stronger financial position with lower debt obligations relative to total assets.
Peer comparison
Dec 31, 2023