RB Global Inc. (RBA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 73.42% | 63.72% | 62.00% | 68.02% | 69.99% |
| Operating profit margin | 12.81% | 26.16% | 16.95% | 19.11% | 16.93% |
| Pretax margin | 7.69% | 23.41% | 14.48% | 17.11% | 14.46% |
| Net profit margin | 5.61% | 18.44% | 10.72% | 12.35% | 11.30% |
RB Global Inc. has seen fluctuating profitability ratios over the past five years. The gross profit margin has shown an increasing trend from 62.00% in 2021 to 73.42% in 2023, indicating the company has been able to improve its efficiency in generating revenue after accounting for the cost of goods sold.
However, the operating profit margin has shown more variability, with a significant decrease from 26.16% in 2022 to 12.81% in 2023. This indicates that the company's operating expenses have had a greater impact on profitability in the most recent year.
Similarly, the pretax margin and net profit margin have also shown volatility over the years. The pretax margin decreased from 23.41% in 2022 to 7.69% in 2023, while the net profit margin decreased from 18.44% in 2022 to 5.61% in 2023. These decreases suggest that RB Global Inc. may have experienced challenges in controlling its expenses or faced other factors impacting its profitability in 2023.
Overall, while the gross profit margin has improved, the declining trends in operating profit margin, pretax margin, and net profit margin indicate the need for RB Global Inc. to closely manage its expenses and operational efficiency to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.92% | 15.84% | 6.68% | 11.19% | 10.01% |
| Return on assets (ROA) | 1.72% | 11.16% | 4.23% | 7.23% | 6.69% |
| Return on total capital | 6.15% | 24.84% | 8.64% | 16.60% | 15.17% |
| Return on equity (ROE) | 4.12% | 24.79% | 14.18% | 16.89% | 16.53% |
RB Global Inc.'s profitability ratios show fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has been inconsistent, with a notable decline in 2023 compared to previous years. This could indicate lower operating efficiency and profitability relative to the assets employed in the business.
2. Return on assets (ROA) also exhibits variability, with a significant decrease in 2023 compared to 2022. This suggests that the company's overall ability to generate profits from its total assets has weakened.
3. Return on total capital has shown fluctuation, with a considerable decline in 2023 compared to 2022. This suggests that the company's efficiency in generating returns for all capital invested has decreased.
4. Return on equity (ROE) has also experienced fluctuations, with a noticeable decrease in 2023 from the previous year. This indicates a lower profitability for equity shareholders in the most recent period.
Overall, the downward trends in these profitability ratios for RB Global Inc. in 2023 raise concerns about the company's ability to efficiently utilize its assets and generate profits for its shareholders. Further analysis of the company's financial performance and strategy may be needed to address and rectify these issues.