Regal Beloit Corporation (RRX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,033,700 | 14,559,000 | 14,607,700 | 15,073,800 | 15,431,400 | 15,365,000 | 15,857,800 | 16,547,400 | 10,268,900 | 10,249,000 | 10,458,500 | 10,471,100 | 10,281,600 | 4,485,000 | 4,773,700 | 4,627,200 | 4,589,000 | 4,479,400 | 4,408,100 | 4,585,900 |
| Total stockholders’ equity | US$ in thousands | 6,259,800 | 6,473,100 | 6,355,900 | 6,254,500 | 6,344,300 | 6,169,200 | 6,410,300 | 6,420,600 | 6,388,200 | 6,139,900 | 6,276,700 | 6,383,700 | 6,311,900 | 2,694,800 | 2,665,000 | 2,584,100 | 2,544,400 | 2,421,900 | 2,319,100 | 2,270,600 |
| Financial leverage ratio | 2.24 | 2.25 | 2.30 | 2.41 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,033,700K ÷ $6,259,800K
= 2.24
Regal Beloit Corporation's financial leverage ratio shows a consistent downward trend from March 2020 to December 2021, indicating a gradual decrease in the company's reliance on debt to finance its operations. The ratio decreased from 2.02 in March 2020 to 1.61 in December 2022, reflecting a stronger balance sheet and lower financial risk.
However, starting in March 2023, the financial leverage ratio experienced a sudden increase, reaching a peak of 2.58 in that quarter. This suggests a potential increase in the company's debt levels relative to its equity, which may raise concerns about the company's financial stability and ability to meet its debt obligations.
Subsequently, the ratio declined slightly but remained relatively high, hovering around 2.25-2.30 from September 2024 to December 2024. This indicates that Regal Beloit Corporation's capital structure still leans towards higher debt levels compared to equity, which can pose risks during economic downturns or challenging operating environments.
Overall, the fluctuation in the financial leverage ratio highlights the importance of monitoring the company's debt management practices and their potential impacts on financial health and stability.
Peer comparison
Dec 31, 2024