Regal Beloit Corporation (RRX)
Debt-to-equity 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-equity ratio | 1.01 | 0.31 | 0.30 | 0.33 | 0.48 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,377,000K ÷ $6,344,300K
= 1.01
The debt-to-equity ratio for Regal Rexnord Corp has shown fluctuating trends over the past five years. In 2023, the ratio increased to 1.01 from 0.32 in 2022, indicating a significant rise in debt relative to equity. This suggests that the company may have taken on more debt compared to its shareholder's equity, which could potentially increase financial risk.
In 2022 and 2021, the debt-to-equity ratio was relatively low at 0.32 and 0.30 respectively, indicating a conservative capital structure with lower debt levels compared to equity. However, there was a slight increase in the ratio in 2021 compared to 2022, suggesting a small uptick in leverage.
The ratio was higher in 2021 and 2020 at 0.42 and 0.48 respectively, indicating higher debt levels relative to equity during those years. This could signal increased financial risk and potential concerns about the company's ability to service its debt obligations.
Overall, the increasing debt-to-equity ratio in 2023 for Regal Rexnord Corp raises a flag regarding the company's leverage and financial health. It would be important for stakeholders to closely monitor future trends in the ratio to assess the company's capital structure and risk management strategies.
Peer comparison
Dec 31, 2023