RB Global Inc. (RBA)

Working capital turnover

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
Revenue (ttm) US$ in thousands 4,231,900 3,679,600 3,082,608 2,474,308 1,852,308 1,733,808 1,649,273 1,567,455 1,479,316 1,416,971 1,441,011 1,442,871 1,435,560 1,377,260 1,326,041 1,284,295 1,288,467 1,318,641 1,342,419 1,297,969
Total current assets US$ in thousands 1,884,800 1,814,000 1,834,500 1,832,300 1,829,700 963,100 953,857 996,839 1,027,510 762,222 825,412 833,585 843,675 556,778 1,012,770 962,454 709,469 679,584 809,256 827,261
Total current liabilities US$ in thousands 1,464,200 1,342,700 1,403,000 1,383,900 1,404,500 795,200 752,182 792,818 848,948 588,419 682,180 716,938 784,865 514,577 753,498 768,042 584,010 501,258 659,959 665,480
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

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,231,900K ÷ ($1,884,800K – $1,464,200K)
= 10.06

RB Global Inc. has shown fluctuating trends in its working capital turnover over the past several quarters. The working capital turnover ratio measures the efficiency of the company in utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support its revenue generation.

In the most recent quarter, as of March 31, 2024, RB Global Inc. achieved a working capital turnover of 10.06, which represents a significant improvement compared to the previous quarter. This indicates that the company was able to generate $10.06 in sales for every dollar of working capital invested. The higher ratio suggests that RB Global Inc. efficiently utilized its working capital to drive sales during the period.

Looking back at historical data, the working capital turnover ratio has shown variability over time. It reached its highest point at 32.64 in December 2020, indicating a substantial efficiency in working capital management during that period. On the other hand, the ratio dropped to its lowest point of 4.36 in March 2023, possibly signaling challenges in working capital management efficiency during that quarter.

Overall, RB Global Inc. has displayed varying levels of effectiveness in converting its working capital into sales revenue over the analyzed periods. It is essential for the company to consistently monitor and optimize its working capital management practices to sustain efficient operational performance and support revenue growth in the long term.