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.