CH Robinson Worldwide Inc (CHRW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.08 | 3.68 | 4.40 | 3.48 | 2.74 |
CH Robinson Worldwide Inc's solvency ratios indicate a strong financial position with consistently low debt levels. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 over the five-year period from 2020 to 2024, indicating that the company has not relied heavily on debt to fund its operations and investments.
The Financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, has shown some variability over the period. It increased from 2.74 in 2020 to 4.40 in 2022, indicating a temporary increase in leverage. However, it decreased to 3.08 by the end of 2024, suggesting a reduction in the company's reliance on debt financing.
Overall, CH Robinson's solvency ratios reflect a conservative capital structure and a prudent approach to managing its debt levels, which bodes well for its ability to weather financial challenges and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.44 | 4.88 | 12.67 | 18.09 | 14.98 |
The interest coverage ratio of CH Robinson Worldwide Inc has displayed varying trends over the years, reflecting its ability to meet interest obligations from its earnings.
As of December 31, 2020, the company exhibited a solid interest coverage ratio of 14.98, indicating that it generated earnings almost 15 times greater than its interest expense, demonstrating a robust capacity to cover interest payments.
By the end of December 31, 2021, the interest coverage ratio improved further to 18.09, reinforcing the company's strong financial position and ability to comfortably meet its interest obligations.
However, the ratio witnessed a decline as of December 31, 2022, dropping to 12.67. Although still above 1, indicating that earnings can cover interest payments, this reduction may warrant further monitoring to assess any potential impacts on the company's financial health.
As of December 31, 2023, CH Robinson Worldwide Inc experienced a significant decrease in its interest coverage ratio to 4.88. This substantial decline suggests a diminished ability to meet interest costs from earnings alone, signaling a potential strain on the company's financial resources.
By December 31, 2024, there was a slight improvement in the interest coverage ratio to 7.44. While this uptick is favorable compared to the prior year, it remains lower than the levels seen in earlier periods, underlining the importance of closely monitoring the company's financial performance and its ability to service its debt obligations going forward.