RB Global Inc. (RBA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	576,200	494,300	326,113	278,766	359,671
Short-term investments	US$ in thousands	—	24	—	—	—
Total current liabilities	US$ in thousands	1,342,700	795,200	588,419	514,577	501,258
Cash ratio		0.43	0.62	0.55	0.54	0.72

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($576,200K + $—K) ÷ $1,342,700K
= 0.43

The cash ratio of RB Global Inc. has shown a general decreasing trend over the past five years, declining from 0.72 in 2019 to 0.43 in 2023. This indicates that the company's ability to cover its current liabilities solely with its cash and cash equivalents has weakened over time.

A cash ratio below 1.0 suggests that the company may not have sufficient liquid assets to cover its short-term obligations. RB Global Inc. may be relying more on other forms of current assets or financing options to meet its short-term financial commitments.

It's essential for RB Global Inc. to closely monitor its cash reserves and liquidity position to ensure it can manage unexpected expenses or economic downturns. Management may need to implement strategies to improve cash management and enhance the company's financial stability in the short term.