CH Robinson Worldwide Inc (CHRW)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	17,596,400	24,696,600	23,102,100	16,207,100	15,309,500
Total current assets	US$ in thousands	2,880,690	3,589,240	4,804,150	2,941,700	2,640,120
Total current liabilities	US$ in thousands	2,051,990	3,322,850	3,326,340	1,839,730	1,556,040
Working capital turnover		21.23	92.71	15.63	14.71	14.12

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,596,400K ÷ ($2,880,690K – $2,051,990K)
= 21.23

The working capital turnover ratio for C.H. Robinson Worldwide, Inc. shows significant fluctuations over the past five years. In 2023, it stands at 21.23, a substantial decrease from the unusually high value of 92.71 in 2022. This sudden drop may indicate a potential inefficiency in utilizing working capital to generate revenue. Comparing 2023 to earlier years, the ratio is still higher than in 2021 (15.63), 2020 (14.71), and 2019 (14.12), suggesting an improvement in the company's working capital management efficiency. However, further analysis is required to understand the reasons behind the fluctuations and evaluate the company's overall financial performance.