CH Robinson Worldwide Inc (CHRW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.23% | 89.69% | 90.08% | 88.37% | 87.35% |
| Operating profit margin | 2.92% | 5.13% | 4.68% | 4.15% | 5.16% |
| Pretax margin | 2.33% | 4.72% | 4.43% | 3.88% | 4.85% |
| Net profit margin | 1.85% | 3.81% | 3.65% | 3.12% | 3.77% |
C.H. Robinson Worldwide, Inc.'s profitability ratios have shown a declining trend over the past five years. The gross profit margin, which reflects the company's profitability after accounting for the cost of goods sold, decreased from 16.89% in 2019 to 14.80% in 2023. This suggests that the company has been less efficient in generating profits from its core operations.
Similarly, the operating profit margin, which indicates the company's profitability from its core business activities, decreased from 5.16% in 2019 to 2.92% in 2023. This decline suggests that the company's operating expenses might have increased relative to its operating income.
The pretax margin, a measure of profitability before accounting for taxes, also exhibited a decreasing trend from 4.85% in 2019 to 2.33% in 2023. This indicates that the company's non-operating expenses or tax obligations have put pressure on its profitability.
Finally, the net profit margin, which represents the company's profitability after all expenses have been deducted, decreased from 3.77% in 2019 to 1.85% in 2023. This decline indicates that the company's overall profitability has been impacted by a combination of factors, including lower gross margins, higher operating expenses, and increased taxes.
Overall, C.H. Robinson Worldwide, Inc. has seen a downward trajectory in its profitability ratios, reflecting challenges in maintaining and improving its bottom line performance over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.85% | 21.27% | 15.40% | 13.09% | 17.02% |
| Return on assets (ROA) | 6.22% | 15.80% | 12.01% | 9.84% | 12.43% |
| Return on total capital | 18.13% | 55.72% | 31.68% | 22.64% | 28.59% |
| Return on equity (ROE) | 22.92% | 69.49% | 41.75% | 26.94% | 34.53% |
C.H. Robinson Worldwide, Inc.'s profitability ratios show fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has shown a declining trend, decreasing from 21.27% in 2022 to 9.85% in 2023. This indicates that the company's ability to generate operating income from its assets has weakened.
2. Return on assets (ROA) has also decreased over the years, from 15.80% in 2022 to 6.22% in 2023. This suggests that the overall profitability of the company in relation to its total assets has decreased.
3. Return on total capital has shown a similar downward trend, dropping from 38.07% in 2022 to 17.16% in 2023. This ratio reflects how efficiently the company is utilizing its total capital to generate returns.
4. Return on equity (ROE) has fluctuated significantly, with a significant decrease in 2023 to 22.92% from a high of 69.49% in 2022. This ratio indicates the company's ability to generate profit from shareholders' equity.
Overall, the declining profitability ratios suggest potential challenges in terms of operational efficiency and the company's ability to generate returns for both asset and capital providers. Further analysis is recommended to understand the underlying factors contributing to these trends and to devise strategies for improvement.