RB Global Inc. (RBA)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	533,900	576,200	494,324	326,113	278,766
Short-term investments	US$ in thousands	—	15,753	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,331,300	1,342,700	795,290	588,419	514,577
Quick ratio		0.40	0.44	0.62	0.55	0.54

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($533,900K + $—K + $—K) ÷ $1,331,300K
= 0.40

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. RB Global Inc.'s quick ratio has fluctuated over the years, indicating variations in its short-term liquidity.

As of December 31, 2020, the quick ratio stood at 0.54, suggesting that for every dollar of current liabilities, RB Global Inc. had $0.54 of liquid assets available to cover those obligations. This ratio increased slightly to 0.55 by the end of 2021, indicating a marginal improvement in the company's ability to meet its short-term obligations.

The quick ratio further improved to 0.62 by December 31, 2022, indicating a stronger liquidity position for RB Global Inc. in that period. However, by the end of 2023, the quick ratio dropped significantly to 0.44, suggesting a potential strain on the company's ability to cover its short-term liabilities with its available liquid assets.

By December 31, 2024, the quick ratio declined further to 0.40, indicating a continued decrease in RB Global Inc.'s short-term liquidity position. This trend may raise concerns about the company's ability to meet its upcoming obligations without potentially resorting to external financing.

Overall, the fluctuations in RB Global Inc.'s quick ratio over the years highlight the importance of closely monitoring the company's liquidity position and implementing strategies to ensure sufficient liquid assets to cover short-term liabilities.