RB Global Inc. (RBA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.29 | 1.35 | 1.31 | 1.32 | 1.30 | 1.21 | 1.27 | 1.26 | 1.21 | 1.30 | 1.21 | 1.16 | 1.07 | 1.08 | 1.34 | 1.25 | 1.21 | 1.36 | 1.23 | 1.24 |
| Quick ratio | 0.97 | 0.98 | 0.98 | 0.99 | 0.98 | 0.86 | 1.00 | 0.85 | 0.88 | 0.84 | 0.91 | 0.81 | 0.75 | 0.82 | 1.07 | 0.94 | 0.93 | 1.01 | 0.86 | 0.84 |
| Cash ratio | 0.32 | 0.43 | 0.31 | 0.31 | 0.40 | 0.62 | 0.58 | 0.46 | 0.52 | 0.55 | 0.53 | 0.42 | 0.38 | 0.54 | 0.62 | 0.51 | 0.50 | 0.72 | 0.47 | 0.32 |
RB Global Inc.'s liquidity ratios indicate its ability to meet short-term obligations. The current ratio has fluctuated slightly over the past few quarters, averaging around 1.28, suggesting the company has sufficient current assets to cover current liabilities, although the ratio dipped below 1 in some periods.
The quick ratio, which excludes inventory from current assets, fluctuated between 0.75 and 1.07, with an average of 0.91. This ratio implies a tighter liquidity position compared to the current ratio, indicating RB Global may face challenges meeting its immediate obligations without relying on inventory sales.
The cash ratio, averaging around 0.50, indicates RB Global's ability to cover current liabilities with cash and cash equivalents alone. The ratio shows a decreasing trend, suggesting a decline in the company's ability to meet short-term obligations without relying on other liquid assets.
Overall, RB Global's liquidity ratios highlight a generally stable but potentially tight liquidity position, especially when considering quick and cash ratios alongside the current ratio. Continuous monitoring of liquidity trends will be crucial for assessing the company's ability to manage short-term financial obligations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of RB Global Inc. fluctuated over the past few quarters, indicating variations in its efficiency in managing cash flows related to its operations. The company's cash conversion cycle ranged from a low of 39.23 days to a high of 181.51 days during the period under review.
The company experienced a significant increase in its cash conversion cycle in the first quarter of 2023, reaching 181.51 days, which may suggest delays in converting inventory and receivables into cash, thereby tying up working capital for a longer period.
On the other hand, RB Global Inc. managed to reduce its cash conversion cycle to 39.23 days in the third quarter of 2020, reflecting improved efficiency in managing working capital and cash flows. This decrease indicates a faster turnover of inventory and quicker collection of receivables, leading to a more streamlined cash conversion process.
Overall, RB Global Inc. should closely monitor its cash conversion cycle to ensure optimal management of working capital and cash flows, aiming to strike a balance between inventory management, accounts receivable collection, and payment to suppliers to enhance overall operational efficiency and financial performance.