RB Global Inc. (RBA)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of RB Global Inc.:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. RB Global Inc. experienced a fluctuating trend in its inventory turnover ratio over the years:
- It decreased from 7.13 in 2020 to 5.80 in 2021, indicating slower inventory turnover.
- However, there was a significant improvement in 2023 and 2024, with ratios of 11.42 and 18.76, respectively, suggesting faster inventory turnover.

2. Receivables Turnover:
- The receivables turnover ratio shows how well a company collects its accounts receivable. The data provided shows that RB Global Inc. did not report any figures for this ratio, indicating either the absence of accounts receivable or incomplete data.

3. Payables Turnover:
- The payables turnover ratio reflects how the company manages its accounts payable. Similar to receivables turnover, RB Global Inc. did not provide any data for payables turnover, making it challenging to evaluate the efficiency of payables management.

4. Working Capital Turnover:
- The working capital turnover ratio gauges how effectively the working capital is being used to generate sales. RB Global Inc. showed varying results in this ratio:
- A significant decrease from 32.64 in 2020 to 8.15 in 2021 suggests a less efficient utilization of working capital for generating sales.
- Subsequent improvements were seen in 2022, 2023, and 2024, with ratios of 10.33, 7.81, and 11.17, respectively. These increases imply better efficiency in utilizing working capital for generating sales in those years.

In conclusion, RB Global Inc. demonstrated fluctuations in its inventory turnover and working capital turnover ratios over the years. However, the absence of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

RB Global Inc.'s Days of Inventory on Hand (DOH) ratio has shown fluctuations over the years. The company managed to reduce its inventory holding period from 62.90 days in 2021 to 19.45 days in 2024. This indicates an improvement in inventory management efficiency, as the company is holding less inventory on hand, which may result in lower storage costs and better cash flow utilization.

On the other hand, RB Global Inc.'s Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not provided (denoted as "— days" for all years). This lack of data limits our ability to assess the company's efficiency in collecting receivables and managing payables.

Overall, RB Global Inc. has been able to improve its inventory management efficiency over the years, as evidenced by the declining trend in the Days of Inventory on Hand ratio. However, a more comprehensive analysis incorporating DSO and Payables turnover ratios would provide a more holistic view of the company's overall activity efficiency.

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Long-term

RB Global Inc.'s fixed asset turnover has shown a positive trend over the years, increasing from 2.80 in 2020 to 3.78 in 2022. This indicates that the company is becoming more efficient in generating sales from its fixed assets.

On the other hand, the total asset turnover ratio has been fluctuating, with a significant decrease in 2021 followed by an increase in 2022. This ratio measures the company's ability to generate sales from all its assets. The fluctuation in this ratio may indicate changes in the company's asset management efficiency.

Overall, while the fixed asset turnover ratio suggests an improvement in utilizing fixed assets to generate revenue, the total asset turnover ratio's fluctuations may warrant further investigation into the company's overall asset management strategies to ensure sustainable efficiency.