Regal Beloit Corporation (RRX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 652,000 | 702,600 | 509,000 | 470,000 | 435,300 | 408,200 | 597,600 | 642,200 | 708,600 | 574,500 | 511,600 | 420,200 | 350,100 | 405,100 | 383,800 | 318,000 | 290,400 | 276,800 | 258,600 | 307,400 |
| Interest expense (ttm) | US$ in thousands | 399,700 | 412,800 | 426,300 | 441,000 | 431,000 | 366,700 | 276,600 | 173,600 | 87,200 | 58,100 | 58,700 | 56,800 | 60,400 | 54,700 | 41,700 | 40,800 | 39,800 | 43,700 | 48,200 | 51,000 |
| Interest coverage | 1.63 | 1.70 | 1.19 | 1.07 | 1.01 | 1.11 | 2.16 | 3.70 | 8.13 | 9.89 | 8.72 | 7.40 | 5.80 | 7.41 | 9.20 | 7.79 | 7.30 | 6.33 | 5.37 | 6.03 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $652,000K ÷ $399,700K
= 1.63
Regal Beloit Corporation's interest coverage ratio has fluctuated over the past few years, reflecting changes in the company's ability to cover its interest obligations from its operating income. The interest coverage ratio represents the company's ability to meet its interest payments on outstanding debt.
From March 2020 to June 2021, the interest coverage ratio showed an increasing trend, indicating an improvement in Regal Beloit's ability to cover its interest expenses. However, from September 2021 to June 2024, the interest coverage ratio saw a declining trend, suggesting a potential deterioration in the company's ability to cover its interest payments.
The interest coverage ratio reached its peak at 9.89 in September 2022, indicating a robust ability to meet interest obligations. However, by March 2024, the ratio had dropped to 1.07, well below the industry standard, which may raise concerns about Regal Beloit's ability to service its debt effectively.
Overall, Regal Beloit's interest coverage ratio has shown volatility over the years, and it is essential for stakeholders to monitor this ratio closely to ensure the company maintains a healthy financial position and meets its debt obligations effectively.
Peer comparison
Dec 31, 2024