CH Robinson Worldwide Inc (CHRW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 145,524 | 217,482 | 257,413 | 243,796 | 447,858 |
| Short-term investments | US$ in thousands | — | — | — | 1,879,930 | — |
| Receivables | US$ in thousands | 2,381,960 | 2,991,750 | 3,963,490 | 2,449,580 | 1,974,380 |
| Total current liabilities | US$ in thousands | 2,051,990 | 3,322,850 | 3,326,340 | 1,839,730 | 1,556,040 |
| Quick ratio | 1.23 | 0.97 | 1.27 | 2.49 | 1.56 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($145,524K
+ $—K
+ $2,381,960K)
÷ $2,051,990K
= 1.23
The quick ratio of C.H. Robinson Worldwide, Inc. has fluctuated over the past five years, indicating variability in the company's ability to cover its short-term liabilities with its most liquid assets.
In 2023, the quick ratio improved to 1.40, reflecting a stronger liquidity position compared to the previous year. This suggests that the company had $1.40 in liquid assets available to cover each dollar of its current liabilities, indicating a more favorable short-term liquidity position.
However, the quick ratio was lower in 2022 at 1.08, which may raise some concerns about the company's ability to meet its short-term obligations with its readily available assets. The ratio then rebounded in 2021 to 1.44, indicating an improvement in liquidity relative to the year before.
The quick ratios for 2020 and 2019 were 1.60 and 1.70, respectively, showing a trend of stronger liquidity positions in those years compared to the more recent ones. This suggests that C.H. Robinson Worldwide, Inc. may have had more liquid assets relative to its current liabilities in those periods.
Overall, a quick ratio above 1.0 typically indicates that a company can meet its short-term obligations using its liquid assets, but the varying levels of the ratio over the years suggest fluctuations in the company's ability to do so. It would be important for stakeholders to monitor this ratio closely to assess the company's ongoing liquidity position.
Peer comparison
Dec 31, 2023