CH Robinson Worldwide Inc (CHRW)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	513,462	620,891	554,294	493,618	514,607	571,212	745,299	1,082,341	1,266,782	1,390,154	1,413,314	1,204,253	1,082,108	1,001,504	858,974	787,157	673,268	603,272	636,118	674,866
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,722,050	1,640,070	1,510,440	1,429,990	1,418,700	1,404,580	1,388,110	1,381,390	1,353,420	1,677,560	2,052,420	2,095,500	2,021,930	1,950,800	1,906,170	1,868,190	1,879,930	1,873,360	1,704,330	1,587,120
Return on total capital		29.82%	37.86%	36.70%	34.52%	36.27%	40.67%	53.69%	78.35%	93.60%	82.87%	68.86%	57.47%	53.52%	51.34%	45.06%	42.13%	35.81%	32.20%	37.32%	42.52%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $513,462K ÷ ($—K + $1,722,050K)
= 29.82%

The return on total capital for CH Robinson Worldwide Inc has exhibited fluctuating trends over the periods provided.

From March 31, 2020, to June 30, 2022, the return on total capital showed a general upward trajectory, increasing from 42.52% to 68.86%, indicating improving efficiency in generating returns from the total invested capital.

However, between June 30, 2022, and December 31, 2024, there was increased volatility in the return on total capital, with significant fluctuations observed. The ratio reached its peak at 93.60% on December 31, 2022, before experiencing a notable decline to 29.82% by the end of December 31, 2024.

Overall, the return on total capital for CH Robinson Worldwide Inc demonstrates periods of strong performance followed by volatility and a subsequent decline in the efficiency of generating returns from the total capital invested. It would be important for stakeholders to further investigate the factors influencing these fluctuations to assess the sustainability and future prospects of the company's capital allocation and utilization strategies.