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Regal Rexnord (Regal Rexnord) ROE % : 3.57% (As of Dec. 2023)


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What is Regal Rexnord ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Regal Rexnord's annualized net income for the quarter that ended in Dec. 2023 was $224 Mil. Regal Rexnord's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $6,257 Mil. Therefore, Regal Rexnord's annualized ROE % for the quarter that ended in Dec. 2023 was 3.57%.

The historical rank and industry rank for Regal Rexnord's ROE % or its related term are showing as below:

RRX' s ROE % Range Over the Past 10 Years
Min: -0.9   Med: 7.67   Max: 10.25
Current: -0.9

During the past 13 years, Regal Rexnord's highest ROE % was 10.25%. The lowest was -0.90%. And the median was 7.67%.

RRX's ROE % is ranked worse than
78.23% of 2953 companies
in the Industrial Products industry
Industry Median: 7.1 vs RRX: -0.90

Regal Rexnord ROE % Historical Data

The historical data trend for Regal Rexnord's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Regal Rexnord ROE % Chart

Regal Rexnord Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.25 7.67 5.15 7.66 -0.90

Regal Rexnord Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.48 -0.37 2.00 -8.87 3.57

Competitive Comparison of Regal Rexnord's ROE %

For the Specialty Industrial Machinery subindustry, Regal Rexnord's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Regal Rexnord's ROE % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Regal Rexnord's ROE % distribution charts can be found below:

* The bar in red indicates where Regal Rexnord's ROE % falls into.



Regal Rexnord ROE % Calculation

Regal Rexnord's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-57.4/( (6388.2+6344.3)/ 2 )
=-57.4/6366.25
=-0.90 %

Regal Rexnord's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=223.6/( (6169.2+6344.3)/ 2 )
=223.6/6256.75
=3.57 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Regal Rexnord  (NYSE:RRX) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=223.6/6256.75
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(223.6 / 6432.8)*(6432.8 / 15398.2)*(15398.2 / 6256.75)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.48 %*0.4178*2.4611
=ROA %*Equity Multiplier
=1.45 %*2.4611
=3.57 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=223.6/6256.75
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (223.6 / 297.6) * (297.6 / 614.8) * (614.8 / 6432.8) * (6432.8 / 15398.2) * (15398.2 / 6256.75)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7513 * 0.4841 * 9.56 % * 0.4178 * 2.4611
=3.57 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Regal Rexnord ROE % Related Terms

Thank you for viewing the detailed overview of Regal Rexnord's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Regal Rexnord (Regal Rexnord) Business Description

Traded in Other Exchanges
Address
200 State Street, Beloit, WI, USA, 53511
Regal Rexnord Corp is in the engineering and manufacturing of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products and specialty electrical components and systems, serving customers around the world. The four operating segments include Commercial Systems, Industrial Systems, Climate Solutions and Motion Control Solutions.
Executives
Theodore D Crandall director C/O ROCKWELL AUTOMATION INC, 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
Timothy A. Dickson officer: SVP & Chief Digi & Info Ofc* 111 WEST MICHIGAN STREET, MILWAUKEE WI 53203
John Avampato officer: VP & Chief Information Officer 200 STATE STREET, BELOIT WI 53511
Brooke Lang officer: EVP and President, PES* 2090 BLAIRMONT DR, PITTSBURGH PA 15241
Michael P Doss director 814 LIVINGSTON COURT, MARIETTA GA 30067
Alexander P Scarpelli officer: VP, Corp. Controller and CAO* 200 STATE STREET, BELOIT WI 53511
John C Kunze officer: Segment President* 200 STATE STREET, BELOIT WI 53511
Curtis W Stoelting director C/O RC2 CORPORATION, 1111 WEST 22ND STREET, SUITE 320, OAK BROOK IL 60523
Christopher L Doerr director
Kevin J Zaba officer: President, Motion Control Sol. C/O REXNORD CORPORATION, P.O. BOX 2022, MILWAUKEE WI 53201
Daniel J Klun officer: VP, Corporate Controller 200 STATE STREET, BELOIT WI 53511
Robin A Walker-lee director C/O TRW AUTOMOTIVE, 12001 TECH CENTER DRIVE, LIVONIA MI 48150
Scott Douglas Brown officer: Segment President* 200 STATE STREET, BELOIT WI 53511
Dean A Foate director
Eric S Mcginnis officer: Segment President* 200 STATE STREET, BELOIT WI 53511