CH Robinson Worldwide Inc (CHRW)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	5,297,930	5,225,280	5,954,560	7,028,110	5,144,260
Total stockholders’ equity	US$ in thousands	1,722,050	1,418,700	1,353,420	2,021,930	1,879,930
Financial leverage ratio		3.08	3.68	4.40	3.48	2.74

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,297,930K ÷ $1,722,050K
= 3.08

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. CH Robinson Worldwide Inc's financial leverage ratio has shown a steady increase from 2.74 in 2020 to 4.40 in 2022, indicating a higher level of debt relative to equity during this period.

However, in 2023, the ratio decreased to 3.68, suggesting a partial reduction in the company's reliance on debt compared to the previous year. By the end of 2024, the financial leverage ratio further decreased to 3.08, indicating a potential improvement in the company's debt management and a lower level of financial risk.

Overall, while CH Robinson Worldwide Inc experienced fluctuations in its financial leverage ratio over the years, it's essential to monitor this ratio to ensure that the company maintains a healthy balance between debt and equity to support sustainable growth and financial stability.