RB Global Inc. (RBA)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,231,900	3,679,600	3,082,608	2,474,308	1,852,308	1,733,808	1,649,273	1,567,455	1,479,316	1,416,971	1,441,011	1,442,871	1,435,560	1,377,260	1,326,041	1,284,295	1,288,467	1,318,641	1,342,419	1,297,969
Property, plant and equipment	US$ in thousands	1,214,600	1,200,900	1,150,400	1,137,900	1,144,900	459,100	444,538	442,743	445,517	449,087	466,162	482,732	483,981	492,127	481,047	475,936	477,327	484,482	476,776	473,036
Fixed asset turnover		3.48	3.06	2.68	2.17	1.62	3.78	3.71	3.54	3.32	3.16	3.09	2.99	2.97	2.80	2.76	2.70	2.70	2.72	2.82	2.74

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,231,900K ÷ $1,214,600K
= 3.48

The fixed asset turnover ratio for RB Global Inc. has fluctuated over the past few quarters. The ratio indicates the efficiency with which the company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio is generally preferred as it suggests that the company is generating more revenue per dollar invested in fixed assets.

From the data provided, we can see that the fixed asset turnover ratio ranged from 1.62 to 3.78 over the past eight quarters. The highest ratio of 3.78 was observed in the fourth quarter of 2022, indicating that RB Global Inc. was able to generate $3.78 in sales for every dollar invested in fixed assets during that period. On the other hand, the lowest ratio of 1.62 was recorded in the first quarter of 2023, suggesting a lower level of efficiency in utilizing fixed assets to generate revenue.

Overall, the trend in the fixed asset turnover ratio for RB Global Inc. shows variability, with some quarters demonstrating strong performance in asset utilization while others showing lower efficiency. It is essential for the company to maintain a consistent focus on improving the productivity and effectiveness of its fixed assets to drive increased revenue generation in the long term.