CH Robinson Worldwide Inc (CHRW)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	17,724,960	17,762,190	17,458,580	17,397,090	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
Total current assets	US$ in thousands	2,969,600	3,338,990	3,179,170	3,124,180	2,880,690	2,959,240	3,051,480	3,234,650	3,589,240	4,433,370	5,168,260	5,279,230	4,804,150	4,430,660	3,722,560	3,410,110	2,941,700	2,852,700	2,603,930	2,606,640
Total current liabilities	US$ in thousands	2,324,900	2,240,840	2,244,210	2,274,290	2,051,990	2,649,540	2,761,490	2,947,870	3,322,850	3,358,880	3,485,750	3,541,200	3,326,340	3,251,690	2,586,380	2,300,910	1,839,730	1,760,980	1,673,380	1,804,720
Working capital turnover		27.49	16.17	18.67	20.47	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,724,960K ÷ ($2,969,600K – $2,324,900K)
= 27.49

Based on the provided data, the working capital turnover for CH Robinson Worldwide Inc has exhibited fluctuating trends over the past few years.

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations.

From March 2020 to September 2021, the working capital turnover ratio of CH Robinson Worldwide Inc ranged between 14.15 to 17.94, showing relatively stable performance during this period. However, there was a notable increase in the ratio to 24.32 in September 2022, indicating a significant improvement in the efficiency of working capital utilization.

Subsequently, there was a substantial spike in the working capital turnover ratio to 92.71 in December 2022 and further to 78.43 in March 2023, followed by a decline in the ratio to 16.17 in September 2024. These drastic fluctuations suggest potential anomalies or irregularities in the company's working capital management during these periods.

Overall, it is essential for CH Robinson Worldwide Inc to closely monitor its working capital turnover ratio and ensure that it maintains a balance between efficiently utilizing working capital resources and supporting its operational needs to drive sustainable growth and profitability.