RB Global Inc. (RBA)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 282,900 | 405,887 | 205,246 | 235,625 | 190,662 |
| Revenue | US$ in thousands | 3,679,600 | 1,733,800 | 1,416,970 | 1,377,260 | 1,318,640 |
| Pretax margin | 7.69% | 23.41% | 14.48% | 17.11% | 14.46% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $282,900K ÷ $3,679,600K
= 7.69%
RB Global Inc.'s pretax margin has exhibited fluctuations over the past five years. In 2023, the pretax margin decreased significantly to 7.69% from 23.41% in 2022, indicating a substantial decline in profitability before considering taxes. This sharp decrease may be a cause for concern as it suggests a potential decrease in operating efficiency or increased expenses relative to revenue.
Comparing the 2023 pretax margin to the historical trend, it is notably lower than the 5-year average pretax margin of 15.43%. This signifies a deviation from the company's usual profitability levels. In contrast, the pretax margin was higher in 2022 and 2020, standing at 23.41% and 17.11% respectively, indicating stronger profitability during those periods.
Further analysis is necessary to pinpoint the factors contributing to the decline in the pretax margin in 2023. It is essential for RB Global Inc. to assess its cost structure, revenue streams, and operational efficiency to identify potential areas for improvement and ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023