Regal Beloit Corporation (RRX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,033,700 | 15,431,400 | 10,268,900 | 10,281,600 | 4,589,000 |
| Total stockholders’ equity | US$ in thousands | 6,259,800 | 6,344,300 | 6,388,200 | 6,311,900 | 2,544,400 |
| Financial leverage ratio | 2.24 | 2.43 | 1.61 | 1.63 | 1.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,033,700K ÷ $6,259,800K
= 2.24
The financial leverage ratio for Regal Beloit Corporation has exhibited fluctuations over the past five years. Starting at 1.80 in December 31, 2020, the ratio decreased to 1.63 by December 31, 2021, and further to 1.61 by December 31, 2022. However, there was a significant increase in leverage noted by the ratio rising to 2.43 by December 31, 2023, before slightly decreasing to 2.24 by December 31, 2024. This indicates that the company has experienced variations in its debt levels relative to its equity during this period. Further analysis is warranted to understand the reasons behind these changes and their potential implications on the company's financial position and risk profile.
Peer comparison
Dec 31, 2024