Expeditors International of Washington, Inc. (EXPD)

Short-term

Turnover ratios

Expeditors International of Washington, Inc. has shown varying trends in its activity ratios over the reported periods.

1. Inventory Turnover: From March 31, 2020, to December 31, 2023, the inventory turnover ratio exhibited a decreasing trend, indicating that the company was holding inventory for longer periods before selling it. However, in the most recent periods, the ratio increased significantly, reaching its peak at 66.56 as of March 31, 2023, suggesting a more efficient management of inventory.

2. Receivables Turnover: No data is provided for receivables turnover, making it challenging to assess the efficiency of the company in collecting its outstanding receivables within a specific period.

3. Payables Turnover: Similar to receivables turnover, there is no available data for payables turnover, which hinders the analysis of how quickly the company pays off its suppliers.

4. Working Capital Turnover: The working capital turnover ratio indicates how effectively the company is generating revenue from its working capital. The ratio remained relatively stable from March 31, 2020, to September 30, 2023, with some fluctuations but generally showing a slight increasing trend. However, in the most recent reported periods, particularly in the second half of 2023 and 2024, the ratio increased significantly, indicating a more efficient utilization of working capital to generate sales revenue.

Overall, while the inventory turnover and working capital turnover ratios have shown improvements in the recent periods, the lack of data for receivables and payables turnover ratios limits the comprehensive analysis of Expeditors International's efficiency in managing its receivables and payables.

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Average number of days

Based on the provided data on Expeditors International of Washington, Inc.'s activity ratios, we can analyze the company's operational efficiency over time.

1. Days of Inventory on Hand (DOH):
- Expeditors International's DOH has fluctuated over the years, ranging from a low of 5.48 days as of March 31, 2023, to a high of 25.10 days as of December 31, 2021.
- A lower DOH indicates that the company is efficiently managing its inventory, turning it over quickly. On the other hand, a higher DOH may suggest inventory management inefficiencies or potential obsolescence issues.
- Expeditors International's DOH trend shows some volatility, with a general decline in recent periods from a peak in December 2021. The company has shown improvement in inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The data provided does not include any information on Days of Sales Outstanding (DSO) for Expeditors International. DSO measures the average number of days it takes a company to collect revenue after a sale is made.
- Without DSO data, it is challenging to evaluate the efficiency of Expeditors International's accounts receivable management and the company's ability to collect payments from customers in a timely manner.

3. Number of Days of Payables:
- Similarly, no data is available for the Number of Days of Payables for Expeditors International. This ratio indicates how long a company takes to pay its suppliers.
- The absence of payables data limits our ability to assess the company's payment practices and its relationship with suppliers.

In conclusion, the analysis of Expeditors International of Washington, Inc.'s activity ratios based on the provided data highlights the company's varying inventory management efficiency over time. However, the lack of information on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's overall operational efficiency and working capital management.

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Long-term

The Fixed Asset Turnover ratio for Expeditors International of Washington, Inc. has shown variability over the years. The ratio increased steadily from March 2020 to September 2022, peaking at 39.56. This indicates that the company was generating a significant amount of revenue relative to its investment in fixed assets during this period. However, there was a notable decrease in the ratio in the following quarters, possibly signaling a change in the efficiency of utilizing fixed assets to generate sales.

In contrast, the Total Asset Turnover ratio exhibited a more stable trend for the company. It generally increased from March 2020 to December 2022 before experiencing a slight decline in the subsequent periods. The peak ratio of 3.05 in December 2022 represents the company's ability to generate sales relative to its total assets.

Overall, an analysis of both ratios suggests that Expeditors International of Washington, Inc. has been effective in generating revenue from its asset base over the years, with some fluctuations in efficiency observed in the utilization of fixed assets for revenue generation.