CH Robinson Worldwide Inc (CHRW)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	17,725,000	17,596,400	24,696,600	23,102,100	16,207,100
Total current assets	US$ in thousands	2,969,600	2,880,690	3,589,240	4,804,150	2,941,700
Total current liabilities	US$ in thousands	2,324,900	2,051,990	3,322,850	3,326,340	1,839,730
Working capital turnover		27.49	21.23	92.71	15.63	14.71

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,725,000K ÷ ($2,969,600K – $2,324,900K)
= 27.49

Working capital turnover is a key efficiency ratio that measures how effectively a company is utilizing its working capital to generate revenue.

In the case of CH Robinson Worldwide Inc, the working capital turnover has shown a fluctuating trend over the past few years.

- In 2020, the working capital turnover was 14.71, indicating that the company generated $14.71 in revenue for every dollar of working capital invested.
- This ratio improved in 2021 to 15.63, suggesting a slightly more efficient use of working capital to generate revenue.
- However, there was a significant spike in the ratio in 2022 to 92.71, indicating a substantial increase in revenue generation relative to working capital. This could be due to more efficient management of inventory and receivables.
- The ratio then decreased in 2023 to 21.23, which still signifies a relatively efficient use of working capital to generate revenue.
- Finally, in 2024, the ratio increased to 27.49, signaling a positive trend in utilizing working capital effectively to support revenue growth.

Overall, the working capital turnover ratio of CH Robinson Worldwide Inc has demonstrated variations over the years, with significant improvements and fluctuations. It is important for the company to continue monitoring and managing its working capital efficiently to support sustainable revenue growth.