RB Global Inc. (RBA)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,494,423	2,539,860	2,553,460	2,451,001	2,024,537	1,550,020	1,191,994	834,004	776,701	722,496	669,753	618,608	594,785	629,462	628,907	641,424	615,590	589,392	592,708	610,212
Inventory	US$ in thousands	121,500	163,900	145,879	172,722	187,436	173,900	179,900	207,300	103,050	101,302	124,964	78,890	102,494	64,201	85,930	72,314	86,278	62,101	63,089	61,747
Inventory turnover		20.53	15.50	17.50	14.19	10.80	8.91	6.63	4.02	7.54	7.13	5.36	7.84	5.80	9.80	7.32	8.87	7.13	9.49	9.39	9.88

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,494,423K ÷ $121,500K
= 20.53

RB Global Inc.'s inventory turnover ratio fluctuated over the period under review, ranging from a low of 4.02 times in March 31, 2023, to a high of 20.53 times in December 31, 2024. The inventory turnover ratio indicates how efficiently the company is managing its inventory. A higher ratio suggests that inventory is being sold or used up quickly, which is generally favorable as it minimizes holding costs and reduces the risk of inventory obsolescence.

The trend in RB Global Inc.'s inventory turnover ratio shows some volatility, with significant fluctuations observed over the periods analyzed. For instance, there was a sharp increase in the inventory turnover ratio from December 31, 2023 (10.80 times) to March 31, 2024 (14.19 times), followed by a substantial increase to 17.50 times by June 30, 2024. These spikes may indicate improved inventory management efficiency, faster sales, or a strategic reduction in inventory levels.

However, it is worth noting that the inventory turnover ratio decreased to 15.50 times by September 30, 2024, then further dropped to 20.53 times by December 31, 2024. While a high inventory turnover ratio is generally positive, excessively high turnover may indicate insufficient inventory levels, leading to potential stockouts and lost sales opportunities.

Overall, the analysis of RB Global Inc.'s inventory turnover ratio suggests that the company has shown varying degrees of inventory management effectiveness over the periods examined, with some periods demonstrating notable improvement and others indicating potential challenges that may require further investigation and strategic adjustments.