Regal Beloit Corporation (RRX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 6,344,300 | 6,388,200 | 6,370,000 | 2,544,400 | 2,351,100 |
| Debt-to-capital ratio | 0.50 | 0.24 | 0.23 | 0.25 | 0.33 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,377,000K ÷ ($6,377,000K + $6,344,300K)
= 0.50
The debt-to-capital ratio of Regal Rexnord Corp has exhibited fluctuations over the past five years. The ratio stood at 0.50 at the end of December 31, 2023, representing a significant increase from the previous year's ratio of 0.24. This suggests that the company's reliance on debt in relation to its total capital has more than doubled year over year.
Compared to the ratios in 2021 and 2020, which were 0.23 and 0.30 respectively, the recent increase indicates a notable shift in the capital structure towards a higher proportion of debt. However, it is worth noting that the current ratio is still lower than the ratio reported at the end of December 28, 2019, which was 0.33.
The increase in the debt-to-capital ratio could signal potential changes in the company's financing strategy or a response to evolving market conditions. Investors and stakeholders may want to further investigate the reasons behind this shift to assess the potential implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2023