Expeditors International of Washington Inc (EXPD)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,280,370	17,046,400	16,511,700	10,091,100	8,166,180
Total current assets	US$ in thousands	3,435,200	4,518,020	6,635,040	3,963,540	2,769,920
Total current liabilities	US$ in thousands	1,704,410	2,054,060	3,726,300	1,893,040	1,168,320
Working capital turnover		5.36	6.92	5.68	4.87	5.10

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,280,370K ÷ ($3,435,200K – $1,704,410K)
= 5.36

Expeditors International Of Washington, Inc.'s working capital turnover has fluctuated over the past five years, showcasing the company's efficiency in managing its working capital. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital invested.

In 2023, the working capital turnover ratio stands at 5.37, representing a decrease from the previous year's ratio of 6.93. This decline suggests that the company may have experienced challenges in efficiently utilizing its working capital to generate revenue during the year.

Comparing the 2023 ratio to the ratios of the earlier years, Expeditors International Of Washington, Inc. has demonstrated varying levels of working capital efficiency. The ratios for 2022, 2021, and 2019 were higher than the 2023 figure, indicating that the company was more effective in utilizing its working capital in those years.

Overall, while the working capital turnover has shown fluctuations, it is essential for Expeditors International Of Washington, Inc. to closely monitor and manage its working capital to optimize operational efficiency and maximize revenue generation. By analyzing trends and making strategic adjustments, the company can improve its working capital turnover ratio and enhance its financial performance in the future.