CH Robinson Worldwide Inc (CHRW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 7.38% | 6.47% | 7.57% | 6.96% | 7.22% |
| Operating profit margin | 3.78% | 2.92% | 5.13% | 4.68% | 4.15% |
| Pretax margin | 3.27% | 2.33% | 4.72% | 4.43% | 3.88% |
| Net profit margin | 2.63% | 1.85% | 3.81% | 3.65% | 3.12% |
CH Robinson Worldwide Inc's profitability ratios have varied over the years. The Gross Profit Margin, which measures the percentage of revenue retained after accounting for the cost of goods sold, has fluctuated between 6.47% and 7.57% during the period under review. This indicates the efficiency of the company in managing its production costs.
The Operating Profit Margin, reflecting the company's ability to generate profits from its core operations, has ranged from 2.92% to 5.13%. This metric shows the level of profitability before considering interest and taxes, highlighting the organization's operational efficiency.
In terms of the Pretax Margin, a measure of profitability before taxes, CH Robinson Worldwide Inc has shown a range of 2.33% to 4.72%. This ratio indicates how well the company is able to generate profits relative to its total revenue, considering taxation implications.
Lastly, the Net Profit Margin, representing the percentage of revenue that translates into profit after all expenses have been deducted, has varied from 1.85% to 3.81%. This ratio provides insights into the company's overall profitability after all costs, including interest and taxes, have been accounted for.
Overall, while CH Robinson Worldwide Inc has demonstrated a certain level of profitability over the years, there have been fluctuations in the margins, particularly in more recent years. It would be important for the company to assess its cost structures and revenue streams to ensure sustained profitability and long-term financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.63% | 9.85% | 21.27% | 15.40% | 13.09% |
| Return on assets (ROA) | 8.79% | 6.22% | 15.80% | 12.01% | 9.84% |
| Return on total capital | 38.86% | 36.27% | 93.60% | 53.52% | 35.81% |
| Return on equity (ROE) | 27.04% | 22.92% | 69.49% | 41.75% | 26.94% |
Based on the provided data, we can analyze the profitability ratios of CH Robinson Worldwide Inc over the period from December 31, 2020, to December 31, 2024.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows the company's operating income generated from its assets. CH Robinson's Operating ROA improved from 13.09% in 2020 to 21.27% in 2022, indicating increased operational efficiency. However, there was a decline to 9.85% in 2023 and a slight recovery to 12.63% in 2024.
2. Return on Assets (ROA):
- The ROA measures the company's overall profitability by evaluating its net income in relation to its total assets. CH Robinson's ROA increased from 9.84% in 2020 to 15.80% in 2022 before dropping to 6.22% in 2023 and then recovering to 8.79% in 2024.
3. Return on Total Capital:
- This ratio indicates the return generated by the company on its total invested capital. CH Robinson's Return on Total Capital increased significantly from 35.81% in 2020 to 93.60% in 2022, reflecting higher returns on capital employed. However, there was a decline to 36.27% in 2023 and a further decrease to 38.86% in 2024.
4. Return on Equity (ROE):
- The ROE measures the return earned by the company on shareholder equity. CH Robinson's ROE improved from 26.94% in 2020 to 69.49% in 2022, demonstrating efficient utilization of shareholder funds. There was a decline to 22.92% in 2023, followed by a slight increase to 27.04% in 2024.
Overall, CH Robinson Worldwide Inc experienced fluctuations in its profitability ratios over the period under review. While there were improvements in certain years, there were also decreases in profitability metrics, highlighting the company's changing financial performance and the necessity for the organization to maintain a focus on enhancing operational efficiency and profitability.