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.