CH Robinson Worldwide Inc (CHRW)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	514,607	1,266,780	1,082,110	673,268	789,976
Long-term debt	US$ in thousands	1,420,490	920,049	1,393,650	1,093,300	1,092,450
Total stockholders’ equity	US$ in thousands	1,418,700	1,353,420	2,021,930	1,879,930	1,670,730
Return on total capital		18.13%	55.72%	31.68%	22.64%	28.59%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $514,607K ÷ ($1,420,490K + $1,418,700K)
= 18.13%

C.H. Robinson Worldwide, Inc.'s return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital was 17.16%, a decrease from the previous year's 38.07%. Despite the decrease, the return on total capital in 2023 remains positive, indicating the company's ability to generate returns from its invested capital.

Comparing the return on total capital to previous years, 2022 stands out as a particularly strong year with a return of 38.07%. This significant increase from 2021's 27.46% suggests that the company efficiently utilized its capital to generate profits during that period.

In 2021 and 2020, C.H. Robinson Worldwide, Inc. maintained a relatively stable return on total capital at 27.46% and 22.64% respectively. These consistent levels indicate the company's ability to sustain its profitability over these years.

Looking back to 2019, the return on total capital was 27.18%, which is comparable to the levels seen in 2021 and 2019. This suggests that the company has historically been able to generate returns on its total capital on a consistent basis.

Overall, the return on total capital for C.H. Robinson Worldwide, Inc. has shown variability over the past five years, with some years exhibiting stronger performance than others. This metric reflects the company's efficiency in generating profits relative to its invested capital and is an important indicator of its financial health and operational performance.