RB Global Inc. (RBA)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 3,679,600 1,733,800 1,416,970 1,377,260 1,318,640
Total current assets US$ in thousands 1,814,000 963,100 762,222 556,778 679,584
Total current liabilities US$ in thousands 1,342,700 795,200 588,419 514,577 501,258
Working capital turnover 7.81 10.33 8.15 32.64 7.39

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,679,600K ÷ ($1,814,000K – $1,342,700K)
= 7.81

RB Global Inc.'s working capital turnover has fluctuated in recent years. In 2023, it decreased to 7.81 from 10.33 in 2022, indicating a lower efficiency in utilizing its working capital to generate sales revenue. This may suggest potential inefficiencies in managing its current assets and liabilities in the most cost-effective manner during the period.

Comparing to the 2021 figure of 8.15, the working capital turnover has deteriorated further in 2023. The significant decline in the ratio from 32.64 in 2020 to 7.81 in 2023 is particularly noteworthy. The substantial drop signifies a notable shift in the company's ability to convert working capital into sales.

The trend in working capital turnover over the past five years suggests a less consistent management approach in leveraging working capital to support the company's revenue generation. Further analysis and investigation into the company's operational efficiency and financial management practices may be warranted to address the declining trend witnessed in recent years.