RB Global Inc. (RBA)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		4.41	4.96	3.24	2.64	2.29	9.17	5.32	5.16	4.81	8.30	5.52	5.21	4.83	9.71	3.97	3.85	5.08	9.14	5.15	3.76
DSO	days	82.73	73.55	112.71	138.49	159.51	39.80	68.60	70.79	75.89	43.99	66.13	70.11	75.50	37.58	91.96	94.89	71.88	39.92	70.81	97.10

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.41
= 82.73

RB Global Inc.'s Days of Sales Outstanding (DSO) is a key metric used to assess the efficiency of the company in collecting accounts receivable from its customers.

Analyzing the trend of DSO over the last few quarters, we observe fluctuations in the collection period. In the most recent quarter ending March 31, 2024, the DSO stood at 82.73 days, indicating that, on average, it took the company around 82 days to collect payments from customers. This is an increase from the previous quarter (Dec 31, 2023) where the DSO was 73.55 days.

Looking further back, there was a significant increase in DSO in the quarter ending June 30, 2023, where it peaked at 159.51 days. This suggests a potentially prolonged collection period during that period. The company managed to improve its collections efficiency in the subsequent quarters, with DSO decreasing to 39.80 days by the end of December 2022.

Overall, a lower DSO indicates that the company is collecting payments more quickly, which is favorable for its cash flow. However, a consistently low DSO could also indicate overly aggressive credit policies or challenges in generating sales. On the other hand, a high DSO may signal issues with collections or inefficiencies in accounts receivable management.

RB Global Inc. should continue to monitor its DSO closely and implement strategies to strike a balance between timely collections and maintaining good customer relationships.