CH Robinson Worldwide Inc (CHRW)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	17,596,400	24,696,600	23,102,100	16,207,100	15,309,500
Property, plant and equipment	US$ in thousands	144,718	159,432	139,831	178,949	208,423
Fixed asset turnover		121.59	154.90	165.21	90.57	73.45

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,596,400K ÷ $144,718K
= 121.59

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. Higher fixed asset turnover ratios indicate better utilization of fixed assets in generating sales.

Analyzing C.H. Robinson Worldwide, Inc.'s fixed asset turnover over the past five years, we observe fluctuations in the ratio. The ratio significantly increased from 73.45 in 2019 to 165.21 in 2021, indicating a substantial improvement in the company's ability to generate sales from its fixed asset base. This sharp rise suggests effective management and utilization of fixed assets to drive revenue growth.

However, in the subsequent years, the fixed asset turnover ratio slightly declined to 154.90 in 2022 and further to 121.59 in 2023. While these ratios are still high relative to historical values, the declining trend may warrant further investigation into the company's asset management strategies and operational efficiency.

Overall, C.H. Robinson Worldwide, Inc.'s fixed asset turnover has shown periods of strong performance, indicating efficient utilization of fixed assets to drive sales. However, the recent decline in the ratio highlights the importance of monitoring asset efficiency to ensure sustainable growth and profitability in the future.