RB Global Inc. (RBA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.96	9.17	8.30	9.71	9.14
DSO	days	73.55	39.80	43.99	37.58	39.92

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.96
= 73.55

RB Global Inc.'s Days Sales Outstanding (DSO) is a measure of the average number of days it takes for the company to collect revenue after making a sale. The trend analysis indicates that the DSO has been volatile over the past five years. In 2023, the DSO increased significantly to 73.55 days from 39.80 days in 2022. This suggests that RB Global Inc. is taking longer to collect its accounts receivable in 2023 compared to the previous year.

Comparing 2023 to 2021, there was a notable increase in DSO from 43.99 days to 73.55 days. This indicates a significant deterioration in the collection efficiency of RB Global Inc. during this period. Moreover, when compared to 2020, the DSO rose from 37.58 days to 73.55 days in 2023, indicating a worsening trend in the company's ability to collect receivables promptly.

While the DSO increased in 2023, it is still lower than the DSO in 2019 (39.92 days). This suggests that despite the recent increase, RB Global Inc. had a more efficient collections process in 2023 compared to 2019.

Overall, the increasing trend in DSO over the past two years indicates potential challenges in managing accounts receivable and collecting revenue promptly. It may be important for RB Global Inc. to review its credit policies, billing processes, and collections procedures to improve its cash flow and overall financial performance.