RB Global Inc. (RBA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,037,400 | 2,863,700 | 3,592,910 | 2,351,530 | 2,229,430 |
| Total stockholders’ equity | US$ in thousands | 5,016,700 | 1,289,600 | 1,070,680 | 1,007,240 | 901,833 |
| Financial leverage ratio | 2.40 | 2.22 | 3.36 | 2.33 | 2.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,037,400K ÷ $5,016,700K
= 2.40
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. RB Global Inc.'s financial leverage ratio has fluctuated over the past five years, ranging from 2.22 to 3.36.
In 2023, the financial leverage ratio stands at 2.40, indicating that the company's level of debt relative to its equity is moderate. This suggests that RB Global Inc. has a reasonable balance between debt and equity in its capital structure.
Comparing this to the previous years, the ratio was lowest in 2022 at 2.22, which may indicate a decreased reliance on debt for financing activities. The highest ratio of 3.36 in 2021 suggests a significant increase in leverage, possibly due to a large debt issuance or a decrease in equity.
Overall, RB Global Inc.'s financial leverage ratio has shown some variability over the past five years, with notable changes in certain years. It is important for investors and stakeholders to monitor this ratio to assess the company's risk profile and financial stability.
Peer comparison
Dec 31, 2023