RB Global Inc. (RBA)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 413,100 206,500 319,700 119,135 170,095
Total stockholders’ equity US$ in thousands 5,226,300 5,016,700 1,289,610 1,070,680 1,007,240
ROE 7.90% 4.12% 24.79% 11.13% 16.89%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $413,100K ÷ $5,226,300K
= 7.90%

RB Global Inc.'s return on equity (ROE) has shown fluctuations over the past five years. In 2020, the ROE stood at 16.89%, indicating that for every dollar of shareholders' equity, the company generated a return of 16.89%. However, this figure decreased to 11.13% by the end of 2021, signaling a decline in the company's ability to generate profits from shareholder investments.

The ROE saw a significant improvement in 2022, reaching 24.79%, suggesting that the company effectively utilized shareholder funds to generate higher returns. This could signify improved profitability, asset management, or a higher leverage ratio during that period.

Unfortunately, the trend reversed in 2023, with the ROE dropping to 4.12%, reflecting a diminished ability to generate profits relative to shareholders' equity. This could indicate operational challenges, inefficient use of assets, or higher financial leverage negatively impacting returns.

By the end of 2024, RB Global Inc.'s ROE rose slightly to 7.90%, but it remained significantly below the levels observed in 2020 and 2022. The declining trend in ROE over the years raises concerns about the company's ability to generate sustainable returns for its shareholders and may warrant further investigation into the underlying factors contributing to this performance.