CH Robinson Worldwide Inc (CHRW)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-equity ratio		1.00	0.68	0.69	0.58	0.65

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,420,490K ÷ $1,418,700K
= 1.00

The debt-to-equity ratio of C.H. Robinson Worldwide, Inc. has fluctuated over the past five years. In 2023, the ratio stands at 1.11, which indicates that the company's level of debt relative to its equity is moderate. Comparing this to the previous year, there has been a decrease from 1.46 in 2022 to 1.11 in 2023, signaling a potential improvement in the company's debt management. However, it is worth noting that the ratio has been trending upwards since 2020 when it was at 0.58.

The significant increase in the debt-to-equity ratio from 2020 to 2022 may suggest that the company took on more debt during that period to finance its operations or growth initiatives. The subsequent decrease in the ratio in 2023 could indicate a more conservative approach to managing debt or a reduction in borrowing compared to the prior year.

Overall, while the current ratio of 1.11 is within a reasonable range, investors and stakeholders should continue to monitor C.H. Robinson's debt levels and how they are being managed to ensure the company maintains a healthy balance between debt and equity.