RB Global Inc. (RBA)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,279,500	1,901,200	776,701	594,783	615,589
Inventory	US$ in thousands	121,500	166,500	103,050	102,494	86,278
Inventory turnover		18.76	11.42	7.54	5.80	7.13

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,279,500K ÷ $121,500K
= 18.76

RB Global Inc.'s inventory turnover has exhibited a fluctuating trend over the past five years. In December 2020, the inventory turnover stood at 7.13 times, indicating that the company's inventory was sold and replaced approximately 7.13 times during the year. The turnover ratio decreased slightly to 5.80 times by December 2021, which could suggest either slower sales or excess inventory buildup.

However, there was a significant improvement in December 2022 when the inventory turnover ratio increased to 7.54 times. This may suggest more efficient inventory management practices or an increase in sales relative to the level of inventory on hand. The trend continued positively in December 2023, with a substantial jump to 11.42 times, indicating that the company's inventory was turning over more frequently.

By December 2024, RB Global Inc.'s inventory turnover surged to 18.76 times, reflecting a remarkable increase in the efficiency of managing inventory. This could signify better demand forecasting, optimized inventory levels, or faster sales cycles. Overall, the improving trend in inventory turnover ratios suggests enhanced operational effectiveness and potentially better profitability as the company efficiently manages its inventory.