CH Robinson Worldwide Inc (CHRW)

Working capital 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
Total current assets	US$ in thousands	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	2,640,120	2,683,170	2,706,570	2,728,350
Total current liabilities	US$ in thousands	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	1,556,040	1,434,140	1,496,340	1,429,660
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,596,450K ÷ ($2,880,690K – $2,051,990K)
= 21.23

The working capital turnover ratio of C.H. Robinson Worldwide, Inc. has shown significant fluctuations over the past eight quarters. The Q4 2023 ratio decreased to 21.23 from a peak of 78.43 in Q1 2023. This suggests that the company's efficiency in utilizing its working capital to generate revenue declined in the most recent quarter.

Comparing the Q4 ratios of 2023 and 2022, there's a noticeable decrease from 92.71 to 21.23, indicating a substantial drop in the company's working capital efficiency. This may be a cause for concern as a lower working capital turnover ratio could imply inefficiencies in managing working capital or a slowdown in revenue generation relative to the invested capital.

The ratios from Q2 2023 to Q1 2022 portray relatively stable working capital turnover, apart from the considerable increase seen from Q2 to Q1 2023. Over the eight quarters, the company's working capital turnover has experienced both peaks and troughs, suggesting fluctuations in operational efficiency and a need for close monitoring of working capital management practices.

Overall, the working capital turnover analysis indicates that C.H. Robinson Worldwide, Inc. has exhibited varying levels of efficiency in utilizing its working capital to generate revenue over the past two years, with the most recent quarter showing a notable decline.