RB Global Inc. (RBA)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Current ratio 1.29 1.28 1.29 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
Quick ratio 0.40 0.45 0.49 0.41 0.56 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
Cash ratio 0.40 0.45 0.49 0.41 0.56 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

RB Global Inc.'s liquidity ratios indicate its ability to meet short-term obligations. The current ratio has shown stability over the years, consistently above 1, indicating the company has sufficient current assets to cover its current liabilities. However, there was a slight decrease in the current ratio from December 31, 2023, to March 31, 2024.

The quick ratio, which excludes inventory from current assets, has been fluctuating over the years. It ranged from 0.31 to 0.62, showing some volatility in the company's ability to meet its short-term obligations without relying on inventory. Notably, the quick ratio improved significantly from March 31, 2023, to December 31, 2023.

The cash ratio, which further refines the quick ratio by considering only cash and cash equivalents, has also displayed fluctuations but generally stayed relatively low. This indicates that RB Global Inc. relies more on non-cash current assets to cover its current liabilities. The cash ratio saw some improvement in the second half of 2023 but decreased by the end of 2024.

Overall, while RB Global Inc. has maintained a current ratio above 1, suggesting liquidity, the fluctuating quick and cash ratios indicate some variability in the company's ability to quickly meet its short-term financial commitments. Management should continue to monitor these ratios closely to ensure sufficient liquidity to sustain operations.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash conversion cycle days 17.78 23.55 20.85 25.72 33.79 40.95 55.09 90.72 48.43 51.18 68.10 46.55 62.90 37.23 49.87 41.15 51.16 38.46 38.85 36.93

RB Global Inc.'s cash conversion cycle has exhibited fluctuating trends over the years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the data, it is noted that RB Global Inc.'s cash conversion cycle has experienced volatility, with periods of both improvement and deterioration. For example, the cash conversion cycle decreased from a high of 90.72 days on March 31, 2023, to a low of 17.78 days on December 31, 2024, suggesting a significant improvement in the efficiency of the company's cash management during this period.

A shorter cash conversion cycle indicates that the company is able to generate cash more quickly from its operating activities, potentially signaling effective inventory and accounts receivable management. On the other hand, a longer cycle may indicate inefficiencies in operations, leading to cash being tied up for a longer duration.

RB Global Inc. should closely monitor its cash conversion cycle and strive to maintain a balance between managing working capital efficiently and avoiding stockouts or lost sales. Continuous evaluation and improvement of the company's cash conversion cycle can enhance liquidity, operational efficiency, and overall financial performance.