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.