Regal Beloit Corporation (RRX)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.50 | 0.51 | 0.51 | 0.53 | 0.24 | 0.26 | 0.25 | 0.24 | 0.23 | 0.19 | 0.23 | 0.23 | 0.25 | 0.26 | 0.33 | 0.38 | 0.33 | 0.34 | 0.34 | 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
Based on the data provided, the debt-to-capital ratio of Regal Rexnord Corp has been fluctuating over the past eight quarters. The ratio was relatively stable around the 0.50-0.53 range in the first four quarters of 2023, indicating that approximately 50-53% of the company's capital structure was funded by debt during this period.
Comparing these figures to the previous four quarters in 2022, where the ratio ranged from 0.24 to 0.26, suggests a significant increase in the reliance on debt financing by Regal Rexnord Corp. This shift may imply that the company has taken on more debt relative to its total capital, which could potentially signal a change in its capital structure or financial strategy.
It is essential for stakeholders to closely monitor this trend in the debt-to-capital ratio to assess the company's financial health and risk profile. A rising ratio may indicate increased financial leverage and higher risk, while a declining ratio could suggest a stronger financial position with less reliance on debt for funding.
Peer comparison
Dec 31, 2023