CH Robinson Worldwide Inc (CHRW)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		7.39	8.25	5.83	6.62	7.75
DSO	days	49.41	44.22	62.62	55.17	47.07

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.39
= 49.41

C.H. Robinson Worldwide, Inc.'s Days of Sales Outstanding (DSO) measures the average number of days the company takes to collect revenue after a sale is made.

From 2019 to 2023, the trend in DSO for C.H. Robinson demonstrates some fluctuations. In 2020, there was a minor increase in DSO compared to the preceding year (47.07 days to 55.17 days), indicating a slight slowdown in the collection of revenue. However, in 2021, there was a significant uptick in DSO to 62.62 days, suggesting a potential challenge in collecting sales proceeds efficiently.

Moving forward, in 2022, the DSO decreased to 44.22 days, which may signify improvements in the company's accounts receivable management or collection processes. Subsequently, in 2023, the DSO experienced a slight increase to 49.41 days, indicating a slight delay in average collection times compared to the previous year.

Overall, fluctuations in DSO can provide insights into C.H. Robinson's liquidity, efficiency of operations, and effectiveness in managing accounts receivable. The company may need to closely monitor its collections process to ensure timely revenue realization and maintain a healthy cash flow position.