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.