RB Global Inc. (RBA)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	911,400	972,200	931,581	842,093	754,984	629,096	619,599	601,413	565,405	538,481	485,440	476,455	461,599	440,510	588,816	512,657	460,098	395,668	397,745	394,416
Inventory	US$ in thousands	172,900	166,500	173,900	179,900	207,300	103,100	101,302	124,964	78,890	102,494	64,201	85,930	72,314	86,278	62,101	63,089	61,747	64,956	53,092	78,829
Inventory turnover		5.27	5.84	5.36	4.68	3.64	6.10	6.12	4.81	7.17	5.25	7.56	5.54	6.38	5.11	9.48	8.13	7.45	6.09	7.49	5.00

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $911,400K ÷ $172,900K
= 5.27

RB Global Inc.'s inventory turnover has fluctuated over the past several quarters. The company's inventory turnover ratio ranged from a low of 3.64 in March 2023 to a high of 9.48 in September 2020. In general, a higher inventory turnover ratio indicates that the company is selling its inventory more quickly.

The company experienced a significant increase in inventory turnover in the quarter ending September 2020, suggesting efficient management of inventory levels. Although there was a subsequent decrease in inventory turnover in the following quarters, the ratios remained above 5. This indicates that RB Global Inc. has been able to maintain a relatively healthy level of inventory turnover throughout.

It is important to note that inventory turnover ratios can be influenced by various factors, such as changes in sales volume, pricing strategies, and inventory management practices. Therefore, RB Global Inc. may benefit from further analysis to determine the specific drivers behind the fluctuations in its inventory turnover ratios and to optimize its inventory management strategies.