CH Robinson Worldwide Inc (CHRW)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.28 | 1.40 | 1.08 | 1.44 | 1.60 |
| Quick ratio | 0.06 | 0.07 | 0.07 | 0.08 | 1.15 |
| Cash ratio | 0.06 | 0.07 | 0.07 | 0.08 | 1.15 |
CH Robinson Worldwide Inc's liquidity ratios have exhibited mixed trends over the past five years.
1. Current Ratio: The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown fluctuations. It decreased from 1.60 in 2020 to 1.08 in 2022 but recovered slightly to 1.40 in 2023. However, it dropped again to 1.28 in 2024, indicating a decrease in the company's ability to meet its short-term obligations.
2. Quick Ratio: The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has declined consistently over the years. Starting at 1.15 in 2020, it decreased sharply to 0.06 in 2024. This suggests a significant reduction in the company's ability to meet immediate financial obligations without relying on inventory.
3. Cash Ratio: The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, has followed the same trend as the quick ratio. It dropped from 1.15 in 2020 to 0.06 in 2024, indicating a diminishing ability to cover short-term liabilities with cash on hand.
Overall, the decreasing trend in the quick ratio and cash ratio, along with fluctuations in the current ratio, raises concerns about CH Robinson Worldwide Inc's liquidity position. The company may need to closely monitor and manage its short-term assets and liabilities to ensure it can meet its financial obligations in a timely manner.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
CH Robinson Worldwide Inc has consistently maintained a cash conversion cycle of 0.00 days from December 31, 2020, to December 31, 2024. This indicates that the company efficiently manages its working capital, specifically in terms of converting inventory into cash. A lower cash conversion cycle is generally favorable as it implies that the company can quickly turn its investments in inventory into cash receipts from customers. This efficiency in managing its working capital reflects positively on CH Robinson Worldwide Inc's overall financial performance and liquidity position.