Expeditors International of Washington, Inc. (EXPD)

Short-term

Turnover ratios

Expeditors International of Washington, Inc.'s inventory turnover ratio has displayed fluctuations over the years. The ratio decreased from 25.72 in 2020 to 14.54 in 2021, indicating a slower rate of inventory turnover. However, there was a significant improvement in 2022, with the ratio reaching 57.85, suggesting a more efficient management of inventory. The lack of data for 2023 and 2024 makes it challenging to assess the trend further.

The receivables turnover ratio was not provided for any of the years, resulting in a lack of insight into how efficiently the company collects its receivables from customers.

Similarly, payables turnover data was not available for any of the years, preventing an evaluation of how quickly the company pays its suppliers.

On the other hand, Expeditors International of Washington, Inc.'s working capital turnover ratio has shown a consistent increasing trend from 4.63 in 2020 to 6.65 in 2024. This indicates that the company is generating more revenue relative to its working capital over the years, which could signify improved efficiency in utilizing its capital resources to generate sales.

Overall, while the data for inventory turnover and working capital turnover provide some insights into the company's activity ratios, the lack of information on receivables turnover and payables turnover limits a comprehensive analysis of Expeditors International of Washington, Inc.'s efficiency in managing its working capital and operating cycle.

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Average number of days

Expeditors International of Washington, Inc.'s activity ratios indicate the efficiency of the company in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- In 2020, Expeditors had 14.19 days of inventory on hand, which increased to 25.10 days in 2021, but significantly decreased to 6.31 days in 2022. This pattern suggests a fluctuation in inventory management efficiency over the years.
- Unfortunately, data is not available for 2023 and 2024, limiting a comprehensive analysis of recent performance.

2. Days of Sales Outstanding (DSO):
- No data is provided for DSO for any of the years, which prevents an evaluation of the time it takes for the company to collect payment from its customers.

3. Number of Days of Payables:
- Similarly, data is not available for the number of days of payables for Expeditors in any of the years, which would have shown the company's payment terms with its suppliers and creditors.

Overall, the absence of DSO and payables data for all years limits the comprehensive analysis of sales collection efficiency and payment practices. The fluctuation in the days of inventory on hand indicates potential changes in inventory management strategies by Expeditors International of Washington, Inc.

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Long-term

Expeditors International of Washington, Inc.'s long-term activity ratios indicate how efficiently the company is utilizing its assets to generate sales over multiple years.

The fixed asset turnover ratio measures the effectiveness of the company in utilizing its fixed assets to generate sales. The trend shows a slight decrease from 18.93 in 2020 to 17.45 in 2021, suggesting a decrease in the efficiency of utilizing fixed assets. However, there was a significant improvement in 2022 with a ratio of 34.01, which indicates a significant increase in the efficiency of fixed asset utilization. The absence of data for 2023 and 2024 makes it challenging to assess the trend for these years but based on historical data, a high fixed asset turnover ratio can be seen as a positive sign of efficient asset utilization.

On the other hand, the total asset turnover ratio provides insight into how efficiently the company is using all its assets to generate revenue. There was a positive trend observed in this ratio over the years, increasing from 1.95 in 2020 to 2.17 in 2021 and further to 3.05 in 2022. This increase indicates that Expeditors International of Washington, Inc. was able to generate more revenue per dollar of assets invested, reflecting improved asset utilization efficiency during these years. However, the slight decrease in 2023 to 2.01 and then a small increase to 2.23 in 2024 suggest some fluctuation in asset utilization efficiency during those years.

Overall, the analysis of Expeditors International of Washington, Inc.'s long-term activity ratios indicates varying levels of efficiency in utilizing fixed and total assets over the years. The company's ability to improve and maintain high asset turnover ratios is crucial for maximizing sales from its asset base and achieving long-term financial success.