RB Global Inc. (RBA)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 4,279,210 | 4,207,280 | 4,245,280 | 4,255,910 | 3,708,370 | 3,082,561 | 2,474,240 | 1,852,286 | 1,733,807 | 1,649,319 | 1,567,522 | 1,479,337 | 1,416,971 | 1,441,011 | 1,442,871 | 1,435,560 | 1,377,260 | 1,326,041 | 1,284,295 | 1,288,467 |
Total current assets | US$ in thousands | 1,714,800 | 1,858,800 | 1,965,310 | 1,882,860 | 1,804,720 | 1,834,500 | 1,832,300 | 1,829,700 | 963,117 | 953,857 | 996,839 | 1,027,510 | 762,222 | 825,412 | 833,585 | 843,675 | 556,778 | 1,012,770 | 962,454 | 709,469 |
Total current liabilities | US$ in thousands | 1,331,300 | 1,449,100 | 1,517,980 | 1,462,690 | 1,335,830 | 1,403,000 | 1,383,900 | 1,404,500 | 795,290 | 752,182 | 792,818 | 848,948 | 588,419 | 682,180 | 716,938 | 784,865 | 514,577 | 753,498 | 768,042 | 584,010 |
Working capital turnover | 11.16 | 10.27 | 9.49 | 10.13 | 7.91 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,279,210K ÷ ($1,714,800K – $1,331,300K)
= 11.16
RB Global Inc.'s working capital turnover has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio measures how efficiently a company utilizes its working capital to support its sales.
Initially, the working capital turnover was high at 10.27 on March 31, 2020, indicating that RB Global was efficiently utilizing its working capital to generate sales. However, this ratio decreased to 5.11 by September 30, 2020, suggesting a decline in the company's ability to convert working capital into sales.
The ratio then experienced a significant spike, reaching 32.64 by December 31, 2020, which could indicate a more efficient use of working capital or a boost in sales relative to working capital. Subsequently, the ratio oscillated between 24.41 and 5.52 until June 30, 2024, indicating varying levels of efficiency in utilizing working capital to generate revenue.
Overall, the working capital turnover ratio of RB Global Inc. experienced fluctuations, which could be attributed to changes in sales volume, operational efficiency, and working capital management practices within the company. It is essential for RB Global to monitor and improve this ratio continually to ensure optimal utilization of working capital to drive sales growth and profitability.
Peer comparison
Dec 31, 2024