CH Robinson Worldwide Inc (CHRW)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 49.41 | 48.34 | 45.46 | 43.52 | 44.22 | 53.11 | 59.53 | 63.82 | 62.62 | 64.23 | 60.48 | 60.98 | 55.17 | 55.43 | 48.84 | 49.72 | 47.07 | 48.37 | 61.37 | 81.16 |
| Number of days of payables | days | 212.11 | 210.33 | 200.53 | 205.48 | 210.27 | 243.04 | 279.51 | 307.85 | 288.89 | 307.59 | 296.93 | 266.50 | 231.45 | 235.18 | 243.93 | 209.95 | 187.95 | 192.93 | 198.49 | 186.12 |
| Cash conversion cycle | days | -162.70 | -161.99 | -155.07 | -161.96 | -166.05 | -189.93 | -219.99 | -244.02 | -226.27 | -243.36 | -236.45 | -205.52 | -176.28 | -179.75 | -195.09 | -160.23 | -140.88 | -144.56 | -137.12 | -104.95 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 49.41 – 212.11
= -162.70
The cash conversion cycle of C.H. Robinson Worldwide, Inc. has shown a decreasing trend from Q4 2022 to Q4 2023, indicating an improvement in managing its operating cycle. The company's ability to convert its resources into cash has become more efficient over the past quarters. Specifically, the company reduced its cash conversion cycle from 18.84 days in Q4 2022 to 17.66 days in Q4 2023. This suggests that C.H. Robinson Worldwide, Inc. has been managing its cash flow more effectively, possibly by reducing the time it takes to sell inventory, collect receivables, and pay off liabilities. Additionally, the company has successfully maintained a downward trend in the cash conversion cycle since Q2 2022, which indicates an ongoing focus on operational efficiency. Overall, the decreasing trend in the cash conversion cycle reflects positively on C.H. Robinson Worldwide, Inc.'s liquidity and working capital management.
Peer comparison
Dec 31, 2023