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.


Peer comparison

Mar 31, 2024