Regal Beloit Corporation (RRX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 2.43 | 2.49 | 2.47 | 2.58 | 1.61 | 1.67 | 1.67 | 1.64 | 1.63 | 1.66 | 1.79 | 1.79 | 1.80 | 1.85 | 1.90 | 2.02 | 1.88 | 1.95 | 1.94 | 1.95 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,431,400K ÷ $6,344,300K
= 2.43
The financial leverage ratio of Regal Rexnord Corp has fluctuated over the past eight quarters. The ratio increased from 1.61 in Q4 2022 to 2.58 in Q1 2023, indicating a significant increase in financial leverage. However, the ratio then decreased slightly in subsequent quarters but remained relatively high, ranging from 2.43 to 2.49 in the most recent quarter, Q4 2023.
This pattern suggests that the company has been relying more on debt to finance its operations and investments in recent quarters. A higher financial leverage ratio can indicate increased financial risk, as higher levels of debt may lead to higher interest payments and potential liquidity challenges. It is important for investors and stakeholders to closely monitor the company's ability to manage its debt levels and generate sufficient earnings to cover its financial obligations.
Peer comparison
Dec 31, 2023