CH Robinson Worldwide Inc (CHRW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 27.49 | 21.23 | 92.71 | 15.63 | 14.71 |
Based on the provided data for CH Robinson Worldwide Inc, let's analyze the activity ratios:
1. Inventory Turnover: The inventory turnover ratio indicates how efficiently a company manages its inventory. In this case, the data shows that inventory turnover information is not available or has not been disclosed for the years provided.
2. Receivables Turnover: Receivables turnover ratio measures how effectively a company collects payments from its customers. The data indicates that information on receivables turnover is not available or disclosed for the given years.
3. Payables Turnover: The payables turnover ratio reflects how efficiently a company pays its suppliers and creditors. The data suggests that information on payables turnover is not provided for the mentioned years.
4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently a company generates revenue relative to its working capital. The data indicates that CH Robinson Worldwide Inc had working capital turnover ratios of 14.71 in 2020, 15.63 in 2021, a significant increase to 92.71 in 2022, 21.23 in 2023, and 27.49 in 2024.
Overall, based on the available data, we see that CH Robinson Worldwide Inc improved its efficiency in utilizing working capital to generate revenue over the years, with a notable peak in 2022. However, the lack of information on inventory turnover, receivables turnover, and payables turnover limits a comprehensive assessment of the company’s overall activity and efficiency in managing its assets and liabilities.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for CH Robinson Worldwide Inc, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, are not provided in the data. These ratios are essential in assessing the efficiency of the company's operations in managing inventory, collecting receivables, and paying its suppliers.
Without the specific values for these ratios for the years ending December 31, 2020 to December 31, 2024, it is difficult to provide a detailed analysis of CH Robinson's activity ratios. However, generally, a lower DOH indicates efficient inventory management, a lower DSO suggests faster collection of receivables, and a higher number of days of payables may imply better cash flow management.
To conduct a comprehensive analysis and evaluate the company's performance based on these ratios, the specific numerical values for DOH, DSO, and Number of Days of Payables for the relevant years would be required.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 154.90 | 53.43 | 90.57 |
| Total asset turnover | 3.35 | 3.37 | 4.15 | 3.29 | 3.15 |
CH Robinson Worldwide Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures the efficiency of the company in generating sales from its fixed assets.
- In December 2020, the ratio was 90.57, indicating that for each dollar invested in fixed assets, the company generated $90.57 in sales.
- In December 2021, the ratio decreased to 53.43, which might suggest either a decrease in sales generated from fixed assets or an increase in the value of fixed assets.
- By December 2022, the ratio improved significantly to 154.90, showing a more effective utilization of fixed assets to generate sales.
- Data for December 2023 and December 2024 are not available (denoted by "\u2014"), making it difficult to assess the trend beyond 2022.
2. Total Asset Turnover:
- The Total Asset Turnover ratio indicates how efficiently the company is using all its assets to generate revenue.
- In December 2020, the ratio stood at 3.15, implying that the company generated $3.15 in sales for each dollar invested in total assets.
- The ratio improved slightly in December 2021 to 3.29, indicating a slight increase in sales generated per dollar of total assets.
- There was a significant improvement in December 2022, with the Total Asset Turnover ratio increasing to 4.15, suggesting enhanced efficiency in asset utilization.
- In December 2023 and 2024, the ratio decreased to 3.37 and 3.35, respectively, indicating a slight decline in efficiency in utilizing total assets to generate sales during those periods.
In conclusion, CH Robinson Worldwide Inc exhibited varying efficiency levels in utilizing its assets to generate sales over the years. The Fixed Asset Turnover ratio saw fluctuations, with a notable improvement in 2022, while the Total Asset Turnover ratio showed improvement in 2022 but decreased in 2023 and 2024. The company should monitor these ratios to ensure optimal asset utilization for sustainable growth.