RB Global Inc. (RBA)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	496,700	463,767	242,239	271,193	231,939
Long-term debt	US$ in thousands	3,061,600	577,100	1,733,940	626,288	627,204
Total stockholders’ equity	US$ in thousands	5,016,700	1,289,600	1,070,680	1,007,240	901,833
Return on total capital		6.15%	24.84%	8.64%	16.60%	15.17%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $496,700K ÷ ($3,061,600K + $5,016,700K)
= 6.15%

RB Global Inc.'s return on total capital has shown fluctuation over the past five years. In 2023, the return on total capital was 6.15%, a significant decrease from the previous year's figure of 24.84%. This sharp decline may indicate a decrease in the company's ability to generate profits from its total capital employed.

Comparing the 2023 figure to the returns in 2021 and 2022, which were 8.64% and 24.84% respectively, indicates inconsistency in the company's performance. The return on total capital in 2020 was 16.60% and 15.17% in 2019, suggesting that the company has experienced varying levels of profitability in recent years.

Further analysis of the factors influencing the return on total capital, such as the company's profitability, efficiency in asset utilization, and overall financial health, would be necessary to understand the reasons behind the fluctuations and to assess the company's financial performance effectively.