CH Robinson Worldwide Inc (CHRW)

Receivables 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
Receivables	US$ in thousands	2,381,960	2,442,300	2,505,130	2,681,580	2,991,750	3,802,160	4,302,320	4,391,510	3,963,490	3,721,570	3,166,770	2,874,460	2,449,580	2,346,380	2,018,190	2,092,610	1,974,380	2,074,450	2,100,250	2,057,930
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $17,596,450K ÷ $2,381,960K
= 7.39

The receivables turnover ratio measures how efficiently a company collects cash from its credit sales. A higher receivables turnover ratio indicates a more efficient collection process.

Analyzing C.H. Robinson Worldwide, Inc.'s receivables turnover over the past eight quarters reveals fluctuations in the efficiency of their accounts receivable management.

In Q4 2023, the receivables turnover was 7.39, slightly lower than the previous quarter's 7.55. Despite this slight decrease, the ratio remains relatively healthy, indicating that the company is collecting cash from customers at a good pace.

Looking further back, we observe an increasing trend in receivables turnover from Q2 2022 to Q1 2023, suggesting an improvement in the company's accounts receivable management efficiency during that period.

Comparing the latest ratio to the same quarter in the prior year, Q4 2022, we see a slight decrease from 8.25 to 7.39. However, it is essential to consider the industry benchmarks and the company's historical performance to put this change into perspective.

Overall, while there have been fluctuations in C.H. Robinson Worldwide, Inc.'s receivables turnover ratio over the past eight quarters, the recent ratios indicate a relatively efficient collection process. Further analysis of the company's financial health and industry peer comparisons would provide a more comprehensive understanding of its receivables management effectiveness.