RB Global Inc. (RBA)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	716,900	496,600	386,667	303,267	212,267	463,767	447,146	434,546	431,727	242,280	264,847	280,208	279,108	271,194	271,431	243,986	233,959	231,939	216,497	212,783
Long-term debt	US$ in thousands	2,921,800	3,061,600	3,081,000	3,104,800	3,124,700	577,100	633,048	639,755	1,578,420	1,733,940	632,520	625,832	626,202	626,288	622,635	614,375	613,536	627,204	671,301	686,694
Total stockholders’ equity	US$ in thousands	5,066,300	5,016,700	4,911,800	4,919,800	4,861,500	1,289,600	1,238,800	1,243,680	1,224,980	1,070,680	1,061,940	1,056,330	1,005,520	1,007,240	959,484	899,054	839,805	901,833	838,164	830,684
Return on total capital		8.97%	6.15%	4.84%	3.78%	2.66%	24.84%	23.89%	23.07%	15.40%	8.64%	15.63%	16.66%	17.11%	16.60%	17.16%	16.12%	16.10%	15.17%	14.34%	14.02%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $716,900K ÷ ($2,921,800K + $5,066,300K)
= 8.97%

RB Global Inc.'s return on total capital has exhibited fluctuations over the past several quarters. Return on total capital stood at 8.97% as of March 31, 2024, showing an upward trend from the previous quarter. The return had decreased from 6.15% in December 2023 to 4.84% in September 2023 before showing a slight increase in the subsequent quarters.

The return on total capital was notably high at 24.84% as of December 31, 2022, but experienced a significant decline in the following periods. This indicates potential volatility or changes in the company's capital utilization efficiency and profitability levels.

Overall, the company's return on total capital has ranged from 2.66% to 24.84% over the past few quarters, with some variability in performance. Further analysis and comparison with industry benchmarks can help in understanding the effectiveness of RB Global Inc.'s capital management strategies.