RB Global Inc. (RBA)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 576,200 494,300 326,113 278,766 359,671
Short-term investments US$ in thousands — 24 — — —
Receivables US$ in thousands 741,500 189,048 170,790 141,798 144,212
Total current liabilities US$ in thousands 1,342,700 795,200 588,419 514,577 501,258
Quick ratio 0.98 0.86 0.84 0.82 1.01

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($576,200K + $—K + $741,500K) ÷ $1,342,700K
= 0.98

RB Global Inc.'s quick ratio has shown variability over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates potential difficulty in meeting short-term obligations without relying on selling inventory.

In the most recent year, as of December 31, 2023, the quick ratio improved to 0.98 compared to the previous year's ratio of 0.86. This signifies that RB Global Inc. had a slightly better capability to cover its current liabilities with its quick assets. Despite the improvement, the ratio is still below 1, suggesting some level of risk in meeting short-term obligations without additional liquidity.

Looking at the trend over the past five years, the quick ratio has generally been below 1, except in 2019. The ratio reached its lowest point in 2021 at 0.84 before starting to recover in subsequent years. This indicates that the company may have struggled with managing short-term liquidity in the recent past but has been working towards strengthening its ability to meet immediate obligations.

Overall, while there have been fluctuations in RB Global Inc.'s quick ratio over the years, the latest improvement suggests a positive trend in the company's short-term liquidity position. However, management should continue monitoring and managing liquidity effectively to ensure the company can meet its short-term obligations without issues.