RB Global Inc. (RBA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,807,000 | 12,037,400 | 2,863,730 | 3,592,910 | 2,351,530 |
| Total stockholders’ equity | US$ in thousands | 5,226,300 | 5,016,700 | 1,289,610 | 1,070,680 | 1,007,240 |
| Financial leverage ratio | 2.26 | 2.40 | 2.22 | 3.36 | 2.33 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,807,000K ÷ $5,226,300K
= 2.26
The financial leverage ratio of RB Global Inc. has displayed fluctuations over the past five years. As of December 31, 2020, the ratio stood at 2.33, indicating that the company had $2.33 of debt for every $1 of equity. By December 31, 2021, the ratio increased to 3.36, suggesting a higher level of debt relative to equity. However, in the following years, the ratio decreased, reaching 2.22 by December 31, 2022, and 2.40 by December 31, 2023, signifying a reduction in the company's financial leverage.
Notably, by December 31, 2024, the financial leverage ratio slightly increased to 2.26, indicating a marginal uptick in leverage compared to the previous year. It is essential for RB Global Inc. to carefully manage its financial leverage to ensure a healthy balance between debt and equity in its capital structure, considering the potential impact on the company's risk profile and financial stability.
Peer comparison
Dec 31, 2024