RB Global Inc. (RBA)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 4.41 4.96 3.24 2.64 2.29 9.17 5.32 5.16 4.81 8.30 5.52 5.21 4.83 9.71 3.97 3.85 5.08 9.14 5.15 3.76
Payables turnover 6.03 6.52 6.52 4.93 4.67 6.70 — — — 5.46 — — — 5.23 — — — — — —
Working capital turnover 10.06 7.81 7.14 5.52 4.36 10.33 8.18 7.68 8.28 8.15 10.06 12.37 24.41 32.64 5.11 6.61 10.27 7.39 8.99 8.02

RB Global Inc.'s activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replenishes its inventory over a period. RB Global Inc. has shown fluctuating inventory turnover rates. In recent quarters, the company has generally maintained a healthy turnover rate, indicating efficient management of its inventory levels.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly a company collects its accounts receivable. RB Global Inc. has experienced significant variability in its receivables turnover, with some quarters showing sharp increases and decreases. Generally, a higher turnover suggests better management of credit sales and collection activities.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. RB Global Inc. has inconsistent data for payables turnover, with some quarters missing values. A higher turnover indicates that the company is managing its payables effectively, but the missing values make it difficult to draw definitive conclusions.

4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales revenue. RB Global Inc. has shown varying turnover rates, with some quarters exhibiting exceptionally high turnover ratios. A high turnover ratio indicates effective management of working capital to drive sales and overall business operations.

Overall, RB Global Inc.'s activity ratios suggest that the company has been effective in managing its inventory, receivables, and working capital in recent periods. However, the inconsistencies in payables turnover data warrant further investigation to fully evaluate the company's operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 69.24 62.51 68.14 77.98 100.22 59.82 59.68 75.84 50.93 69.47 48.27 65.83 57.18 71.49 38.50 44.92 48.98 59.92 48.72 72.95
Days of sales outstanding (DSO) days 82.73 73.55 112.71 138.49 159.51 39.80 68.60 70.79 75.89 43.99 66.13 70.11 75.50 37.58 91.96 94.89 71.88 39.92 70.81 97.10
Number of days of payables days 60.51 55.94 55.99 74.08 78.22 54.45 — — — 66.86 — — — 69.83 — — — — — —

The activity ratios of RB Global Inc. provide insights into the efficiency of the company's operations and management of its working capital. The days of inventory on hand (DOH) have fluctuated over the periods, ranging from a low of 38.50 days to a high of 100.22 days. This indicates variability in the company's ability to convert inventory into sales, with longer DOH potentially suggesting excess inventory or slow-moving products.

The days of sales outstanding (DSO) have also varied significantly, ranging from 37.58 days to 159.51 days. Higher DSO values indicate that the company takes longer to collect payments from customers, potentially signaling credit policy issues or challenges in managing accounts receivable efficiently.

The number of days of payables, although not available for all periods, shows that the company generally takes around 55 to 78 days to pay its suppliers. A longer payment period can help improve cash flow but may strain relationships with suppliers if not managed effectively.

Overall, analyzing these activity ratios together can provide a comprehensive picture of RB Global Inc.'s performance in managing its inventory, accounts receivable, and accounts payable. Monitoring these ratios over time can help identify trends and potential areas for improvement in working capital management and operational efficiency.

Long-term

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
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
Total asset turnover 0.35 0.31 0.26 0.21 0.16 0.61 0.58 0.54 0.38 0.39 0.56 0.55 0.55 0.59 0.52 0.52 0.58 0.59 0.57 0.55

RB Global Inc.'s fixed asset turnover ratio has shown variations over the past few quarters. The ratio increased from 2.74 in Q3 2019 to a peak of 3.78 in Q4 2022, indicating that the company was generating $3.78 in sales for every $1 invested in fixed assets. However, the ratio has been declining since then, reaching 3.48 in Q1 2024. This may suggest that RB Global's fixed assets are being utilized less efficiently to generate sales.

On the other hand, the total asset turnover ratio has also fluctuated but remained relatively low throughout the period. The ratio ranged from 0.52 to 0.61, with no clear trend in its movement. This indicates that RB Global Inc. generates lower sales relative to its total assets compared to its fixed assets.

Overall, the declining trend in fixed asset turnover and the consistently low total asset turnover suggest that RB Global Inc. may need to assess and improve its asset utilization efficiency to enhance its overall operational performance and profitability in the long term.