CH Robinson Worldwide Inc (CHRW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 7.39 | 8.25 | 5.83 | 6.62 | 7.75 |
| Payables turnover | 1.72 | 1.74 | 1.26 | 1.58 | 1.97 |
| Working capital turnover | 21.23 | 92.71 | 15.63 | 14.71 | 14.12 |
Activity ratios provide insight into how effectively a company is managing its assets and liabilities to generate sales and operate efficiently.
- Inventory Turnover: Unfortunately, there is no data available for inventory turnover for C.H. Robinson Worldwide, Inc. over the past five years. The absence of this ratio makes it challenging to assess how quickly the company is selling its inventory.
- Receivables Turnover: The receivables turnover ratio measures how many times, on average, a company collects its accounts receivable during a specific period. C.H. Robinson's receivables turnover has fluctuated over the past five years, from 7.39 in 2023 to 7.75 in 2019. This indicates that in 2023, the company collected its receivables less efficiently than in previous years.
- Payables Turnover: The payables turnover ratio reflects how often a company pays its suppliers during a period. C.H. Robinson's payables turnover has decreased steadily from 12.92 in 2019 to 11.50 in 2023. A decreasing trend in payables turnover can indicate that the company is taking longer to pay its suppliers, which may have implications on its working capital management.
- Working Capital Turnover: The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales. C.H. Robinson's working capital turnover has shown significant variability over the past five years, ranging from 14.12 in 2019 to a high of 92.71 in 2022. This volatility may suggest fluctuations in the company's working capital management and its ability to generate sales with the available working capital.
Overall, analyzing these activity ratios for C.H. Robinson Worldwide, Inc. reveals fluctuations in efficiency and effectiveness in managing its assets and liabilities over the past five years. Further analysis, along with other financial metrics, would be needed to gain a comprehensive understanding of the company's operational performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 49.41 | 44.22 | 62.62 | 55.17 | 47.07 |
| Number of days of payables | days | 211.80 | 210.27 | 288.89 | 231.45 | 185.64 |
Activity ratios provide insight into how efficiently a company is managing its assets and operations.
1. Days of Inventory on Hand (DOH): Unfortunately, specific data on the days of inventory on hand for C.H. Robinson Worldwide, Inc. is not provided in the table. DOH measures how many days it takes for a company to sell its inventory. A lower DOH indicates that inventory is turning over quickly, implying efficient inventory management.
2. Days of Sales Outstanding (DSO): The days of sales outstanding for C.H. Robinson Worldwide, Inc. have fluctuated over the past five years. In 2023, DSO increased to 49.41 days from 44.22 days in 2022. This could suggest that the company is taking longer to collect on its sales, potentially indicating issues with accounts receivable management. Lower DSO values are generally preferred as they indicate faster collection of receivables.
3. Number of Days of Payables: The number of days of payables for C.H. Robinson Worldwide, Inc. has also shown variability over the years. In 2023, the days of payables increased to 31.75 days from 25.37 days in 2022. This increase might suggest that the company is taking longer to pay its suppliers. However, a longer payment period may also indicate improved cash flow management, allowing the company to hold onto cash longer before paying its bills.
Overall, interpreting these activity ratios together can provide a more holistic view of C.H. Robinson Worldwide, Inc.'s operational efficiency and effectiveness in managing its working capital. It is important for the company to strive for a balance in these ratios to ensure optimal utilization of its resources and maintain healthy cash flow.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 121.59 | 154.90 | 165.21 | 90.57 | 73.45 |
| Total asset turnover | 3.37 | 4.15 | 3.29 | 3.15 | 3.30 |
C.H. Robinson Worldwide, Inc.'s long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate sales. The fixed asset turnover has fluctuated over the years, with a high of 165.21 in 2021 and a low of 73.45 in 2019. This ratio experienced a decrease in 2023 compared to the previous year, suggesting a potential decrease in the company's ability to generate sales from its fixed assets.
On the other hand, the total asset turnover ratio has shown more stability over the same period, ranging from 3.15 in 2020 to 4.15 in 2022. This ratio measures how well the company generates sales from all its assets, including both fixed and current assets.
Overall, the company's ability to generate revenue from its total assets has been relatively consistent over the years, while the efficiency of its fixed assets utilization has shown more variability. It would be beneficial for C.H. Robinson Worldwide, Inc. to closely monitor its fixed asset turnover to ensure optimal utilization and consider strategies to improve this ratio in the future.