Regal Beloit Corporation (RRX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Regal Beloit Corporation's solvency ratios reflect a very strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The company has maintained a Debt-to-Assets ratio of 0.00% for all periods, indicating that it has no debt obligations in relation to its total assets.
Similarly, the Debt-to-Capital ratio has also remained at 0.00% across all dates, suggesting that the company's capital structure is primarily equity-funded rather than relying on debt financing.
Furthermore, the Debt-to-Equity ratio has consistently stood at 0.00%, indicating that the company has no debt in relation to its shareholders' equity, further emphasizing its strong financial position and minimal leverage.
The Financial Leverage ratio has shown some variability over the periods analyzed, with the ratio fluctuating between 1.61 to 2.58. This metric indicates the extent to which the company is using debt to finance its operations. The increase in the Financial Leverage ratio in the latter periods suggests a slight uptick in leverage; however, it remains at relatively moderate levels, indicating that the company's overall financial risk is still well-managed.
Overall, based on the solvency ratios analyzed, Regal Beloit Corporation appears to have a robust financial structure with a conservative approach to debt management, which enhances its long-term stability and resilience to economic uncertainties.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Regal Beloit Corporation's interest coverage ratio has fluctuated over the past few years based on the provided data. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a company is more capable of servicing its debt obligations.
From March 31, 2020, to June 30, 2021, the interest coverage ratio showed an upward trend, peaking at 9.20 during June 30, 2021. This indicated a strong ability to cover interest expenses comfortably during this period.
However, there was a noticeable decline in the interest coverage ratio from December 31, 2021, to March 31, 2024, with the ratio dropping to as low as 1.01 by December 31, 2023. A ratio around or below 1 indicates that the company's operating income may not be sufficient to cover its interest payments.
It is important to note that a declining interest coverage ratio can be a cause for concern for investors and creditors as it may suggest a higher risk of default on debt obligations. Therefore, Regal Beloit Corporation should closely monitor its interest coverage ratio and take appropriate measures to ensure it remains at a healthy level to maintain financial stability.