CH Robinson Worldwide Inc (CHRW)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	17,596,450	18,441,380	20,115,730	22,492,350	24,696,630	26,131,660	26,379,980	25,114,230	23,102,150	21,149,750	19,110,850	17,205,970	16,207,110	15,450,990	15,082,320	15,363,310	15,309,510	15,654,090	12,492,004	9,254,647
Property, plant and equipment	US$ in thousands	144,718	150,858	159,222	160,864	159,432	158,706	155,829	139,926	139,831	177,418	174,194	174,119	178,949	183,244	188,252	211,799	208,423	209,521	222,390	225,669
Fixed asset turnover		121.59	122.24	126.34	139.82	154.90	164.65	169.29	179.48	165.21	119.21	109.71	98.82	90.57	84.32	80.12	72.54	73.45	74.71	56.17	41.01

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,596,450K ÷ $144,718K
= 121.59

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. Higher fixed asset turnover ratios indicate that the company is efficiently utilizing its fixed assets to generate sales.

Based on the data provided for C.H. Robinson Worldwide, Inc., the fixed asset turnover ratios have been consistently high over the past eight quarters, ranging from 121.59 to 179.48. This indicates that the company is effectively utilizing its fixed assets to generate revenue.

The trend shows a gradual decline in fixed asset turnover from Q1 2022 to Q4 2023, which could suggest a decrease in the efficiency of utilizing fixed assets to generate revenue. However, it is important to note that the ratios are still relatively high, indicating that C.H. Robinson Worldwide, Inc. is efficiently leveraging its fixed assets.

Overall, the company's strong fixed asset turnover ratios demonstrate its ability to generate sales from its investment in fixed assets, which is a positive indicator of operational efficiency and profitability. However, ongoing monitoring of this ratio is recommended to ensure continued optimal utilization of fixed assets.