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.
Peer comparison
Dec 31, 2023