CH Robinson Worldwide Inc (CHRW)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,247,160	2,546,550	2,291,220	1,884,710	1,935,870
Payables	US$ in thousands	1,303,950	1,467,000	1,813,470	1,195,100	984,604
Payables turnover		1.72	1.74	1.26	1.58	1.97

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,247,160K ÷ $1,303,950K
= 1.72

The payables turnover ratio of C.H. Robinson Worldwide, Inc. has fluctuated over the past five years, ranging from a low of 11.00 in 2021 to a high of 14.39 in 2022. A higher payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying its suppliers more frequently within a given period. Conversely, a lower ratio suggests that the company is taking longer to pay its suppliers.

In 2023, the payables turnover ratio decreased to 11.50 from the previous year, which could imply that the company is taking slightly longer to pay its suppliers compared to 2022. However, it is still higher than the 2021 ratio, indicating an improvement in managing accounts payable efficiency compared to two years ago.

Overall, the trend in payables turnover ratios suggests that C.H. Robinson Worldwide, Inc. has been effectively managing its accounts payable over the years, although there have been fluctuations in the efficiency of payment to suppliers. Further analysis and comparison with industry benchmarks would provide more insights into the company's performance in managing its payables.