RB Global Inc. (RBA)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	783,800	505,300	445,488	240,094	266,852
Interest expense	US$ in thousands	233,700	213,800	57,880	36,993	35,568
Interest coverage		3.35	2.36	7.70	6.49	7.50

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $783,800K ÷ $233,700K
= 3.35

RB Global Inc.'s interest coverage ratio fluctuated over the past five years. In December 2020, the company had a healthy interest coverage ratio of 7.50, indicating that it was able to cover its interest expenses 7.5 times over with its earnings before interest and taxes (EBIT).

However, by December 2023, RB Global Inc.'s interest coverage ratio dropped significantly to 2.36, suggesting that the company may be experiencing challenges in meeting its interest obligations with its current level of operating income.

The following year, in December 2024, the interest coverage ratio improved slightly to 3.35, but it still remains below the levels seen in previous years.

Overall, the trend in RB Global Inc.'s interest coverage ratio indicates some instability in the company's ability to service its debt obligations with its earnings. Further analysis of the company's financial performance and debt structure may be necessary to understand the underlying reasons for these fluctuations in the interest coverage ratio over the years.