RB Global Inc. (RBA)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 4,284,200 | 3,679,600 | 1,733,810 | 1,416,970 | 1,377,260 |
Total current assets | US$ in thousands | 1,714,800 | 1,814,000 | 963,117 | 762,222 | 556,778 |
Total current liabilities | US$ in thousands | 1,331,300 | 1,342,700 | 795,290 | 588,419 | 514,577 |
Working capital turnover | 11.17 | 7.81 | 10.33 | 8.15 | 32.64 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,284,200K ÷ ($1,714,800K – $1,331,300K)
= 11.17
RB Global Inc.'s working capital turnover has shown a decreasing trend over the past five years. The ratio was highest at 32.64 in December 31, 2020, indicating that the company was efficiently managing its working capital to generate sales. However, this efficiency has declined significantly over the subsequent years, with the ratio dropping to 8.15 by December 31, 2021, and further decreasing to 7.81 by December 31, 2023.
Although there was a slight improvement in the working capital turnover to 10.33 by December 31, 2022, and 11.17 by December 31, 2024, the ratio remains significantly lower than the initial value in 2020. This declining trend suggests that RB Global Inc. may be facing challenges in effectively utilizing its working capital to support its sales activities. It is essential for the company to closely monitor and improve its working capital turnover to optimize its operations and enhance overall financial performance.
Peer comparison
Dec 31, 2024