CH Robinson Worldwide Inc (CHRW)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.40 | 1.12 | 1.11 | 1.10 | 1.08 | 1.32 | 1.48 | 1.49 | 1.44 | 1.36 | 1.44 | 1.48 | 1.60 | 1.62 | 1.56 | 1.44 | 1.70 | 1.87 | 1.81 | 1.91 |
| Quick ratio | 1.23 | 0.99 | 0.98 | 0.99 | 0.97 | 1.19 | 1.30 | 1.31 | 1.27 | 1.21 | 2.03 | 2.16 | 2.49 | 2.54 | 1.42 | 1.32 | 1.56 | 1.71 | 1.64 | 1.75 |
| Cash ratio | 0.07 | 0.07 | 0.08 | 0.08 | 0.07 | 0.06 | 0.07 | 0.07 | 0.08 | 0.06 | 0.80 | 0.91 | 1.15 | 1.21 | 0.22 | 0.16 | 0.29 | 0.27 | 0.24 | 0.31 |
The liquidity ratios for C.H. Robinson Worldwide, Inc. show fluctuations over the quarters analyzed. The current ratio, which indicates the company's ability to cover its short-term obligations with its current assets, was relatively stable, ranging from 1.08 to 1.40. This implies that the company had a comfortable cushion of current assets to meet its short-term liabilities throughout the period.
The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, also exhibited stability, mirroring the trend of the current ratio. This suggests that the company had a strong ability to cover its short-term obligations with its most liquid assets without relying on inventory sales.
On the other hand, the cash ratio, which provides the most stringent measure of liquidity by considering only cash and cash equivalents to current liabilities, showed some variability. The cash ratio ranged from 0.18 to 0.25, indicating that the company had varying levels of cash on hand relative to its short-term obligations throughout the quarters analyzed.
Overall, the liquidity ratios suggest that C.H. Robinson Worldwide, Inc. maintained a healthy liquidity position, with the ability to meet its short-term obligations comfortably, as evidenced by the current and quick ratios. However, the fluctuation in the cash ratio indicates that the company's cash position varied over the quarters, which may warrant further monitoring to ensure sufficient liquidity for unforeseen circumstances.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for C.H. Robinson Worldwide, Inc. has shown variations over the quarters analyzed. In Q4 2023, the company's cash conversion cycle decreased to 17.66 days, which indicates an improvement in the efficiency of its working capital management compared to the previous quarter. This trend continued from Q3 2023 where it was 16.33 days.
Looking further back, in Q2 and Q1 2023, the cash conversion cycle remained relatively stable around 16.47 and 16.57 days, respectively. This suggests that the company was able to maintain a consistent level of efficiency in converting its investments in inventory and receivables into cash during these periods.
Comparing the recent quarters to the same periods in 2022, there is a noticeable improvement in the cash conversion cycle. In Q4 2022, the cycle was longer at 18.84 days, which has trended downwards over the subsequent quarters. In Q3 and Q2 2022, the cycle was notably longer at 26.08 and 29.47 days, respectively, indicating potential inefficiencies in working capital management during those periods.
Overall, the decreasing trend in the cash conversion cycle for C.H. Robinson Worldwide, Inc. suggests improvements in its operational efficiency and effectiveness in managing its working capital, which could positively impact the company's liquidity and financial performance.