RB Global Inc. (RBA)

RB Global Inc.'s liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, improved from 1.08 in 2020 to 1.30 in 2021 but slightly dropped to 1.21 in 2022 before increasing again to 1.35 in 2023 and then slightly falling to 1.29 in 2024.

The quick ratio, also known as the acid-test ratio, remained relatively stable over the period, hovering around 0.50 in 2020 and 2021, then slightly increasing to 0.62 in 2022 before dropping to 0.44 in 2023 and further to 0.40 in 2024.

Similarly, the cash ratio, a more stringent measure of liquidity, reflecting a company's ability to cover its current liabilities with its cash and cash equivalents, followed a similar trend as the quick ratio, remaining constant at 0.54 in 2020 and 2021, then increasing to 0.62 in 2022, and decreasing to 0.44 in 2023 and 0.40 in 2024.

Overall, RB Global Inc.'s liquidity ratios suggest that the company experienced fluctuations in its short-term liquidity position over the years, indicating the need for careful management of current assets and liabilities to ensure the company can meet its short-term obligations effectively.

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Additional liquidity measure

RB Global Inc.'s cash conversion cycle has shown variations over the years. In 2020, the company had a cash conversion cycle of 51.16 days, which increased to 62.90 days by the end of 2021. However, there was an improvement in the cycle in 2022, decreasing to 48.43 days. Subsequently, in 2023, the cycle saw a significant reduction to 31.97 days, indicating better management of cash flows and working capital. By the end of 2024, RB Global Inc. further improved its cash conversion cycle to 19.45 days, showcasing efficient management of receivables, inventory, and payables. Overall, the trend indicates that the company has been working on optimizing its cash conversion cycle, which is crucial for its liquidity and operational efficiency.