RB Global Inc. (RBA)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	256,800	213,800	159,180	104,680	58,180	57,980	58,773	58,380	48,747	36,993	35,387	35,317	35,332	35,568	37,055	38,408	39,643	41,277	42,830	43,213
Interest coverage		2.79	2.32	2.43	2.90	3.65	8.00	7.61	7.44	8.86	6.55	7.48	7.93	7.90	7.62	7.33	6.35	5.90	5.62	5.05	4.92

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $716,900K ÷ $256,800K
= 2.79

RB Global Inc.'s interest coverage ratio has shown some fluctuations over the past few quarters. The ratio peaked at 8.00 in December 2022 but has since declined, indicating a potential decrease in the company's ability to cover its interest obligations from operating profits. Despite the recent dip, the interest coverage ratio remains comfortably above 1, suggesting that the company's earnings are still sufficient to cover its interest expenses. However, management should closely monitor this trend to ensure the company's financial health and sustainability in the long term.