Expeditors International of Washington, Inc. (EXPD)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	10,600,510	9,923,580	9,113,450	8,914,200	9,300,110	10,463,870	12,636,020	14,999,580	17,071,290	19,026,100	18,983,210	17,988,990	16,523,510	14,296,360	12,325,810	11,127,800	9,830,840	8,706,590	8,432,740	8,057,240
Total current assets	US$ in thousands	3,659,780	4,083,040	3,301,510	3,095,920	3,216,390	3,511,920	3,482,550	4,257,010	4,518,020	5,587,560	6,330,150	6,962,730	6,635,040	6,111,540	4,985,260	4,494,200	3,963,540	3,409,900	2,858,270	2,618,820
Total current liabilities	US$ in thousands	2,066,470	2,375,750	2,160,920	1,826,340	1,704,410	1,667,040	1,579,110	1,760,060	2,054,060	2,706,250	3,411,070	3,721,970	3,726,300	3,275,480	2,485,230	2,195,020	1,893,040	1,496,710	1,288,070	1,159,180
Working capital turnover		6.65	5.81	7.99	7.02	6.15	5.67	6.64	6.01	6.93	6.60	6.50	5.55	5.68	5.04	4.93	4.84	4.75	4.55	5.37	5.52

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,600,510K ÷ ($3,659,780K – $2,066,470K)
= 6.65

Expeditors International of Washington, Inc.'s working capital turnover ratio has shown fluctuations over the past few years, ranging from a low of 4.55 in September 2020 to a high of 7.99 in June 2024. This ratio measures how efficiently the company utilizes its working capital to generate sales revenue.

The upward trend observed from September 2020 to June 2024 indicates an improvement in Expeditors International's ability to generate sales using its working capital. A higher working capital turnover ratio suggests that the company is effectively managing its working capital resources to support its operational activities and sales growth.

However, there are occasional dips in the ratio, such as in September 2023, where it dropped to 5.67. These fluctuations may be influenced by various factors such as changes in sales volume, inventory management, and payment terms with suppliers and customers.

Overall, the increasing trend in the working capital turnover ratio for Expeditors International of Washington, Inc. reflects positively on its efficiency in utilizing working capital to drive sales growth and indicates effective management of its liquidity and operational resources.