RB Global Inc. (RBA)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	2,701,500	1,104,710	878,490	936,750	922,973
Revenue	US$ in thousands	3,679,600	1,733,800	1,416,970	1,377,260	1,318,640
Gross profit margin		73.42%	63.72%	62.00%	68.02%	69.99%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,701,500K ÷ $3,679,600K
= 73.42%

RB Global Inc.'s gross profit margin has exhibited fluctuating trends over the past five years. The company's gross profit margin stood at 73.42% in 2023, indicating an upward trend compared to the previous year's margin of 63.72%. This suggests that in 2023, RB Global Inc. was able to effectively manage its cost of goods sold, resulting in a higher percentage of revenue retained as gross profit.

Comparing the gross profit margin to 2021 and 2020, the margin was 62.00% and 68.02%, respectively. The significant increase from 2021 to 2022 signifies a notable improvement in the company's cost management practices or potentially higher selling prices compared to the cost of goods sold. However, the slight decrease in 2022 compared to 2020 suggests a potential increase in the cost of goods sold or a change in the sales mix impacting profitability.

Moreover, when comparing the gross profit margin in 2023 to 2019, which was 69.99%, there appears to be a positive change in the company's ability to generate profits from its core business activities. This improvement over the five-year period indicates a favorable trend in the company's efficiency in managing production costs or pricing strategies.

Overall, RB Global Inc.'s gross profit margin has shown variation year-on-year, reflecting the company's ability to control production costs and generate profits from its sales. Monitoring this metric over time can provide insights into the company's operational performance and potential future financial health.