RB Global Inc. (RBA)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	978,100	629,097	538,481	440,510	395,668
Payables	US$ in thousands	149,000	93,843	98,632	84,282	79,575
Payables turnover		6.56	6.70	5.46	5.23	4.97

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $978,100K ÷ $149,000K
= 6.56

RB Global Inc.'s payables turnover has exhibited a generally improving trend over the past five years, increasing from 4.97 in 2019 to 6.56 in 2023. This indicates that the company is taking fewer days to pay off its accounts payable, which is a positive sign of efficient management of its payables.

The increasing trend suggests that RB Global Inc. is effectively managing its trade credit obligations. A higher payables turnover ratio typically indicates that the company is utilizing its accounts payable efficiently to finance its operations or taking advantage of early payment discounts, which can improve cash flow and liquidity.

Overall, the rising trend in payables turnover for RB Global Inc. reflects positively on the company's financial health and efficiency in managing its working capital. However, it is important to consider other factors alongside this ratio analysis to gain a more comprehensive understanding of the company's performance and financial position.