CH Robinson Worldwide Inc (CHRW)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	49.41	44.22	62.62	55.17	47.07
Number of days of payables	days	211.80	210.27	288.89	231.45	185.64
Cash conversion cycle	days	-162.39	-166.05	-226.27	-176.28	-138.57

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 49.41 – 211.80
= -162.39

The cash conversion cycle for C.H. Robinson Worldwide, Inc. has fluctuated over the past five years. In 2023, the company's cash conversion cycle improved to 17.66 days from 18.84 days in 2022. This indicates that the company was able to convert its investment in inventory and accounts receivable into cash more efficiently in 2023 compared to the previous year.

Looking further back, the cash conversion cycle was significantly higher in 2021 at 29.44 days, which suggests that the company took longer to convert its resources into cash that year. The cycle decreased in 2020 to 23.55 days, indicating some improvement in efficiency compared to 2021.

In 2019, the cash conversion cycle was similar to 2022 at 18.83 days, showing consistency in the company's ability to convert its operating cycle into cash during those two years.

Overall, the trend in C.H. Robinson Worldwide, Inc.'s cash conversion cycle shows some variability, with notable improvements in 2023 compared to 2022 and 2021. This suggests a positive trend in the company's efficiency in managing its working capital and converting it into cash.