Expeditors International of Washington, Inc. (EXPD)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	10,600,500	9,300,110	17,071,300	16,523,500	9,584,390
Total current assets	US$ in thousands	3,659,780	3,216,390	4,518,020	6,635,040	3,963,540
Total current liabilities	US$ in thousands	2,066,470	1,704,410	2,054,060	3,726,300	1,893,040
Working capital turnover		6.65	6.15	6.93	5.68	4.63

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,600,500K ÷ ($3,659,780K – $2,066,470K)
= 6.65

Based on the provided data, Expeditors International of Washington, Inc.'s working capital turnover has been showing a positive trend over the five-year period from 2020 to 2024. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.

In 2020, the working capital turnover was 4.63, indicating that Expeditors International's working capital was turning over approximately 4.63 times during that year. Over the subsequent years, the ratio improved consistently, reaching 6.65 in 2024. This implies that the company was able to generate more revenue for each unit of working capital invested.

The increasing trend in the working capital turnover ratio suggests that Expeditors International of Washington, Inc. has become more efficient in managing its working capital over the years. A higher working capital turnover ratio generally indicates better liquidity management and more effective utilization of resources to support the company's operations and growth.