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Ritchie Bros Auctioneers Financial Strength

: 5 (As of Jun. 2022)
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Ritchie Bros Auctioneers has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Ritchie Bros Auctioneers's Interest Coverage for the quarter that ended in Jun. 2022 was 5.13. Ritchie Bros Auctioneers's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.41. As of today, Ritchie Bros Auctioneers's Altman Z-Score is 4.44.


Competitive Comparison

For the Specialty Business Services subindustry, Ritchie Bros Auctioneers's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Ritchie Bros Auctioneers Financial Strength Distribution

For the Business Services industry and Industrials sector, Ritchie Bros Auctioneers's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ritchie Bros Auctioneers's Financial Strength falls into.



Ritchie Bros Auctioneers Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Ritchie Bros Auctioneers's Interest Expense for the months ended in Jun. 2022 was $-18 Mil. Its Operating Income for the months ended in Jun. 2022 was $95 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $772 Mil.

Ritchie Bros Auctioneers's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*94.761/-18.463
=5.13

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Ritchie Bros Auctioneers's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(13.254 + 771.95) / 1938.184
=0.41

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Ritchie Bros Auctioneers has a Z-score of 4.44, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.44 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ritchie Bros Auctioneers  (NYSE:RBA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Ritchie Bros Auctioneers has the Financial Strength Rank of 5.


Ritchie Bros Auctioneers Financial Strength Related Terms

Thank you for viewing the detailed overview of Ritchie Bros Auctioneers's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Ritchie Bros Auctioneers Business Description

Ritchie Bros Auctioneers logo
Traded in Other Exchanges
Address
9500 Glenlyon Parkway, Burnaby, BC, CAN, V5J 0C6
Ritchie Bros. operates the world's leading marketplace for heavy equipment. The company started as a live auctioneer of industrial equipment, since then it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment. Ritchie Bros. operates over 40 live auction sites in more than 12 countries, along with online marketplaces, including IronPlanet, Marketplace-E, and GovPlanet. Its agricultural auctions are frequently much smaller venues and can include liquidations of single farms. The company holds over 300 auctions yearly and sells over $5 billion worth of equipment.
Executives
Jacobs Eric Douglas officer: Chief Financial Officer C/O DEALERTRACK HOLDINGS, INC. 1111 MARCUS AVENUE, SUITE M04 LAKE SUCCESS NY 11042
Stephenson Carol director 300 RENAISSANCE CENTER M/C:482-C24-A68 DETROIT MI 48265-3000
Shah Mahesh director 1950 HASSELL ROAD HOFFMAN ESTATES IL 60169-6308
Hook Lisa director NEUSTAR, INC. - C/O DENIS CURRAN 46000 CENTER OAK PLAZA STERLING VA 20166
Geisner Kevin Alan officer: Chief Strategy Officer C/O RITCHIE BROS. AUCTIONEERS INC. 9500 GLENLYON PARKWAY BURNABY A1 V5J0C6
Kessler James Francis officer: Chief Operating Officer C/O RITCHIE BROS. AUCTIONEERS INC. 9500 GLENLYON PARKWAY BURNABY A1 V5J 0C6
Ackley Matthew officer: Chief Marketing Officer C/O FAIRMARKET INC 500 UNICORN PARK DRIVE WOBURN MA 01801
Dewitt Adam director 39 SOUTH LASALLE STREET SUITE 220 CHICAGO IL 60603
Thiede Carmen D officer: Chief Human Resources Officer 7201 METRO BOULEVARD MINNEAPOLIS MN 55439
Concors Baron officer: Chief Information Officer C/O 9500 GLENLYON PARKWAY BURNABY A0 V5J 0C6
Fandozzi Ann director, officer: CEO C/O RITCHIE BROS. AUCTIONEERS INC 9500 GLENLYON PARKWAY BURNABY A1 V5J 0C6
Taylor Kari R officer: President, US Regions C/O RITCHIE BROS. AUCTIONEERS INC. 9500 GLENLYON PARKWAY BURNABY A1 V5J 0C6
Fennell J Kim director C/O RITCHIE BROS. AUCTIONEERS INC. 9500 GLENLYON PARKWAY BURNABY A1 V5J 0C6
Shenkan Amy Guggenheim director C/O RITCHIE BROS. AUCTIONEERS INC. 9500 GLENLYON PARKWAY BURNABY A1 V5J 0C6
Jeter James J officer: President, Sales U.S. C/O RITCHIE BROS. AUCTIONEERS INC. 9500 GLENLYON PARKWAY BURNABY A1 V5J 0C6

Ritchie Bros Auctioneers Headlines

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