Expeditors International of Washington Inc (EXPD)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	—	40.32	62.00	66.39	57.73	33.12	22.22	19.19	14.67	14.98	20.57	26.15	27.23	34.02	51.13	39.60	33.63	23.87	11.92	12.94
Receivables turnover	6.06	7.15	8.86	9.33	8.09	6.92	5.47	4.57	4.38	4.34	4.76	5.20	5.06	5.68	5.89	6.35	6.22	6.34	6.06	6.13
Payables turnover	9.31	10.66	13.36	13.66	13.41	10.72	8.65	7.92	7.20	6.98	7.81	7.83	7.84	8.89	10.00	8.13	6.02	4.19	2.11	2.21
Working capital turnover	5.36	5.66	6.62	6.00	6.92	6.60	6.50	5.55	5.73	5.10	5.04	5.03	4.89	4.70	5.48	5.52	5.10	5.28	5.85	5.53

Inventory turnover data is not provided in the table, hence we are unable to analyze the efficiency of Expeditors International Of Washington, Inc. in managing its inventory during the specified periods.

In terms of receivables turnover, we observe a consistent improvement quarter over quarter, indicating that the company is collecting its accounts receivable more frequently as time progresses. This suggests effective credit management and timely collection of receivables.

The payables turnover ratio demonstrates how efficiently the company is managing its accounts payable. Expeditors International Of Washington, Inc. shows a consistent trend of paying its suppliers more frequently over the quarters, implying effective management of trade credit and possibly leveraging credit terms to its advantage.

The working capital turnover reflects how well the company is utilizing its working capital to generate sales. The ratios show fluctuations but generally remain above 5, indicating that the company is efficiently utilizing its working capital to drive revenue generation.

Overall, based on the activity ratios analyzed, Expeditors International Of Washington, Inc. appears to be effectively managing its receivables, payables, and working capital to support its operational activities and drive business growth over the specified periods.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	9.05	5.89	5.50	6.32	11.02	16.43	19.02	24.88	24.37	17.74	13.96	13.41	10.73	7.14	9.22	10.85	15.29	30.63	28.20
Days of sales outstanding (DSO)	days	60.28	51.04	41.21	39.12	45.13	52.76	66.76	79.89	83.43	84.09	76.69	70.24	72.09	64.23	61.96	57.48	58.71	57.55	60.18	59.50
Number of days of payables	days	39.20	34.24	27.32	26.72	27.23	34.05	42.20	46.09	50.72	52.32	46.74	46.61	46.54	41.04	36.48	44.87	60.59	87.03	172.98	164.79

The activity ratios of Expeditors International Of Washington, Inc. indicate how efficiently the company manages its assets and operations.

1. Days of Inventory on Hand (DOH):
Unfortunately, the DOH data is not available for the periods provided. DOH measures how many days it takes for the company to sell its inventory. A higher DOH may suggest overstocking, while a low or decreasing DOH could indicate efficient inventory turnover.

2. Days of Sales Outstanding (DSO):
DSO measures how long it takes for the company to collect its accounts receivable. Expeditors International Of Washington, Inc. shows a decreasing trend in DSO from Q1 2023 to Q4 2023, indicating that the company is collecting payments from customers more quickly. This suggests efficient accounts receivable management and possibly stricter credit policies.

3. Number of Days of Payables:
The number of days of payables indicates how long the company takes to pay its suppliers. Expeditors International Of Washington, Inc. shows a decreasing trend in the number of days of payables from Q1 2022 to Q4 2023. A decreasing trend may indicate that the company is negotiating better payment terms with suppliers or managing its cash flow more effectively.

In conclusion, based on the available data, Expeditors International Of Washington, Inc. has been improving its efficiency in managing accounts receivable and payables, which could positively impact its cash flow and working capital management.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	19.37	21.70	25.49	29.92	33.96	39.54	38.30	35.66	34.17	29.41	25.24	23.27	19.98	18.01	17.28	16.63	16.37	16.93	16.79	16.58
Total asset turnover	2.05	2.28	2.76	2.81	3.05	2.88	2.58	2.26	2.19	2.04	2.12	2.12	2.05	2.06	2.26	2.30	2.21	2.26	2.30	2.28

Expeditors International Of Washington, Inc. has shown consistent efficiency in utilizing its fixed assets to generate revenue over the quarters analyzed. The fixed asset turnover ratio has been decreasing over the quarters, indicating that the company generated $19.41 of revenue for every dollar invested in fixed assets in Q4 2023. This decline suggests that the company may be experiencing challenges in efficiently utilizing its fixed assets to generate revenue.

In contrast, the total asset turnover ratio has fluctuated over the quarters but generally remained stable. The total asset turnover ratio indicates that the company generated $2.06 of revenue for every dollar of total assets in Q4 2023. This suggests that Expeditors International Of Washington, Inc. is efficiently using its total assets to generate revenue.

Overall, while the company's fixed asset turnover has shown a decreasing trend, its total asset turnover remains relatively stable, indicating that Expeditors International Of Washington, Inc. is effectively managing its assets to generate revenue. Further analysis of the company's strategy and operational efficiency may be needed to fully understand the implications of these ratios on its long-term performance.