RB Global Inc. (RBA)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	776,514	766,307	758,707	732,649	497,293	390,679	308,833	221,100	319,413	281,741	271,406	269,056	240,145	260,530	274,295	273,578	263,158	261,750	234,526	223,696
Total assets	US$ in thousands	11,807,000	11,932,000	12,077,100	12,032,800	11,975,800	12,012,800	11,911,400	11,868,000	2,863,730	2,822,570	2,893,960	3,867,410	3,592,910	2,576,350	2,606,980	2,626,690	2,351,530	2,537,990	2,478,510	2,227,720
Operating ROA		6.58%	6.42%	6.28%	6.09%	4.15%	3.25%	2.59%	1.86%	11.15%	9.98%	9.38%	6.96%	6.68%	10.11%	10.52%	10.42%	11.19%	10.31%	9.46%	10.04%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $776,514K ÷ $11,807,000K
= 6.58%

RB Global Inc.'s operating return on assets (operating ROA) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 10.04% in March 2020, declined slightly to 9.46% in June 2020, then increased to 11.19% by December 2020. Subsequently, the operating ROA fluctuated between 10% and 11.5% until December 2021.

However, from March 31, 2022, to December 31, 2024, there was a noticeable decline in the operating ROA trend, dropping from 6.96% in March 2022 to 6.58% by December 2024. The ratio experienced a significant decline in the last eight quarters, suggesting potential challenges in generating profits from the company's assets involved in operations.

This declining trend in operating ROA may indicate inefficiencies in managing the company's assets to generate operating profits. Further analysis of the company's operational efficiency, asset utilization, and profitability drivers is necessary to identify the root causes of this decline and formulate strategies for improvement.