RB Global Inc. (RBA)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	69.24	62.51	68.14	77.98	100.22	59.82	59.68	75.84	50.93	69.47	48.27	65.83	57.18	71.49	38.50	44.92	48.98	59.92	48.72	72.95
Days of sales outstanding (DSO)	days	82.73	73.55	112.71	138.49	159.51	39.80	68.60	70.79	75.89	43.99	66.13	70.11	75.50	37.58	91.96	94.89	71.88	39.92	70.81	97.10
Number of days of payables	days	60.51	55.94	55.99	74.08	78.22	54.45	—	—	—	66.86	—	—	—	69.83	—	—	—	—	—	—
Cash conversion cycle	days	91.46	80.12	124.86	142.39	181.51	45.17	128.28	146.63	126.82	46.61	114.40	135.94	132.68	39.23	130.46	139.80	120.87	99.84	119.53	170.05

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.24 + 82.73 – 60.51
= 91.46

RB Global Inc.'s cash conversion cycle has varied significantly over the past 20 quarters, ranging from a low of 39.23 days to a high of 181.51 days. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.

Analyzing the trend, we observe fluctuations in the cash conversion cycle over the quarters. The cycle generally seems to be longer than the industry average, indicating that RB Global Inc. may face challenges in efficiently managing its working capital.

Notably, there are quarters where the cash conversion cycle is relatively short, such as in December 2022 and March 2020, which may suggest effective management of inventory and receivables. Conversely, in quarters like March 2023 and September 2019, the cycle is quite extended, indicating possible inefficiencies in collecting receivables and managing inventory levels.

Overall, RB Global Inc. can benefit from further analyzing the underlying factors contributing to the fluctuations in its cash conversion cycle to optimize its working capital management and enhance cash flow efficiency.