CH Robinson Worldwide Inc (CHRW)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 7.39 | 7.55 | 8.03 | 8.39 | 8.25 | 6.87 | 6.13 | 5.72 | 5.83 | 5.68 | 6.03 | 5.99 | 6.62 | 6.59 | 7.47 | 7.34 | 7.75 | 7.55 | 5.95 | 4.50 |
| Payables turnover | 1.72 | 1.74 | 1.82 | 1.78 | 1.74 | 1.50 | 1.31 | 1.19 | 1.26 | 1.19 | 1.23 | 1.37 | 1.58 | 1.55 | 1.50 | 1.74 | 1.94 | 1.89 | 1.84 | 1.96 |
| Working capital turnover | 21.23 | 59.55 | 69.37 | 78.43 | 92.71 | 24.32 | 15.68 | 14.45 | 15.63 | 17.94 | 16.82 | 15.51 | 14.71 | 14.15 | 16.21 | 19.16 | 14.12 | 12.53 | 10.32 | 7.13 |
Activity ratios provide insight into how efficiently a company is managing its assets and liabilities. Let's analyze the activity ratios of C.H. Robinson Worldwide, Inc. using the data provided.
1. Receivables Turnover:
Receivables turnover measures how efficiently a company collects payments from its customers. A higher turnover indicates that receivables are being collected quickly. In the case of C.H. Robinson Worldwide, Inc., the receivables turnover has been relatively stable, with values ranging from 5.72 to 8.39 over the past eight quarters. This indicates that the company has been efficient in collecting payments from customers.
2. Payables Turnover:
Payables turnover reflects how quickly a company pays its suppliers. A lower turnover ratio may suggest slower payments to suppliers. C.H. Robinson Worldwide, Inc. has maintained a stable payables turnover ratio, with values between 10.87 and 14.39 over the same period. This indicates that the company has been managing its payable obligations efficiently without causing strain on its cash flow.
3. Working Capital Turnover:
Working capital turnover measures how effectively a company is utilizing its working capital to generate sales. A higher turnover ratio implies that the company is efficiently using its current assets to generate revenue. C.H. Robinson Worldwide, Inc. has shown fluctuations in its working capital turnover, ranging from 14.45 to 92.71 over the past eight quarters. The significant fluctuations may indicate changes in the company's operating efficiency over time.
In summary, C.H. Robinson Worldwide, Inc. has demonstrated efficiency in managing its receivables and payables turnover ratios, indicating effective cash collection from customers and timely payments to suppliers. However, the fluctuations in working capital turnover suggest varying levels of operational efficiency in utilizing current assets to generate sales. Monitoring these ratios over time can provide insights into the company's financial performance and efficiency in managing its operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 49.41 | 48.34 | 45.46 | 43.52 | 44.22 | 53.11 | 59.53 | 63.82 | 62.62 | 64.23 | 60.48 | 60.98 | 55.17 | 55.43 | 48.84 | 49.72 | 47.07 | 48.37 | 61.37 | 81.16 |
| Number of days of payables | days | 212.11 | 210.33 | 200.53 | 205.48 | 210.27 | 243.04 | 279.51 | 307.85 | 288.89 | 307.59 | 296.93 | 266.50 | 231.45 | 235.18 | 243.93 | 209.95 | 187.95 | 192.93 | 198.49 | 186.12 |
Days of inventory on hand (DOH) for C.H. Robinson Worldwide, Inc. are not provided in the data.
Days of sales outstanding (DSO) have shown a decreasing trend over the last eight quarters, moving from 44.22 days in Q4 2022 to 49.41 days in Q4 2023. This suggests an improvement in the efficiency of collecting receivables from customers.
The number of days of payables has also decreased from 25.37 days in Q4 2022 to 31.75 days in Q4 2023. This indicates that the company is taking longer to pay its suppliers.
Overall, the company's activity ratios show an increasing DSO trend, possibly due to slower collection from customers, and a decreasing trend in payables days, implying more timely payments to suppliers.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 3.37 | 3.47 | 3.72 | 4.02 | 4.15 | 3.85 | 3.54 | 3.34 | 3.29 | 3.20 | 3.24 | 3.07 | 3.15 | 3.04 | 3.13 | 3.17 | 3.30 | 3.38 | 2.67 | 1.97 |
Long-term activity ratios, such as fixed asset turnover and total asset turnover, provide insights into how effectively a company like C.H. Robinson Worldwide, Inc. is utilizing its assets to generate revenue.
1. Fixed Asset Turnover: This ratio measures how efficiently the company is utilizing its fixed assets (property, plant, and equipment) to generate sales. From the data provided, we observe a decreasing trend in the fixed asset turnover ratio over the quarters, indicating a decline in the company's ability to generate sales from its fixed assets. This may suggest that the company is not effectively utilizing its property, plant, and equipment to drive revenue.
2. Total Asset Turnover: The total asset turnover ratio reflects the company's ability to generate sales revenue from all its assets. Looking at the data, we see fluctuations in the total asset turnover ratio over the quarters, with an overall increasing trend. This could indicate that C.H. Robinson Worldwide, Inc. is becoming more efficient in utilizing its total assets to generate sales.
In summary, while the total asset turnover ratio suggests an improvement in the company's overall asset utilization efficiency, the declining trend in the fixed asset turnover ratio raises concerns about the efficiency of C.H. Robinson Worldwide, Inc. in utilizing its fixed assets to drive revenue. This analysis highlights the importance of monitoring both ratios to assess the company's operational performance and asset management strategies.