Expeditors International of Washington Inc (EXPD)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	9,280,370	10,434,340	12,608,090	14,972,040	17,046,400	19,014,300	18,971,410	17,977,190	16,670,430	14,455,080	12,600,620	11,572,160	10,116,480	8,992,230	8,602,290	8,057,240	8,175,430	8,366,090	8,382,180	8,304,160
Total current assets	US$ in thousands	3,435,200	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	2,769,920	2,769,210	2,711,460	2,728,990
Total current liabilities	US$ in thousands	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	1,168,320	1,183,590	1,278,820	1,227,930
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

December 31, 2023 calculation

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

The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.

From the data provided, we can see that Expeditors International Of Washington, Inc. has experienced fluctuations in its working capital turnover ratio over the past eight quarters. The ratio ranged from a low of 5.37 in Q4 2023 to a high of 6.93 in Q4 2022.

Overall, the company's working capital turnover has been relatively healthy, staying above 5 in all quarters. This suggests that Expeditors International Of Washington, Inc. is effectively utilizing its working capital to generate revenue.

The highest ratio of 6.93 in Q4 2022 indicates that the company was particularly efficient in converting its working capital into sales during that period. However, the decrease in the ratio to 5.37 in Q4 2023 may warrant further investigation to understand the reasons behind this decline and whether it is a temporary fluctuation or a concerning trend.

In conclusion, Expeditors International Of Washington, Inc. has shown consistent performance in managing its working capital efficiently, as indicated by its working capital turnover ratios staying relatively stable above the benchmark of 5. It will be important for the company to continue monitoring this ratio to ensure optimal utilization of its working capital in driving revenue growth.