Robert Half International Inc (RHI)

Short-term

Turnover ratios

Based on the activity ratios provided for Robert Half Inc over the past five years, we can observe the following trends:

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company collects its accounts receivable during a period.
- Robert Half Inc has shown relatively consistent performance in collecting its receivables, with ratios ranging from 6.56 to 7.43 over the past five years.
- A higher receivables turnover ratio suggests that the company is collecting its receivables more quickly, which is generally a positive sign of efficient operations.

2. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales.
- Robert Half Inc has demonstrated varying levels of efficiency in utilizing its working capital, with ratios ranging from 6.02 to 8.83 over the period analyzed.
- A higher working capital turnover ratio indicates that the company is generating more sales revenue per dollar of working capital, which is indicative of effective management of resources.

3. Inventory Turnover and Payables Turnover:
- Unfortunately, the data for inventory turnover and payables turnover ratios are not provided in the table, which limits a comprehensive analysis of Robert Half Inc's performance in managing inventory and paying its suppliers.

In conclusion, based on the available data, Robert Half Inc has shown relatively consistent performance in efficiently collecting receivables and utilizing working capital to generate sales. However, further analysis on inventory turnover and payables turnover would provide a more comprehensive view of the company's overall activity efficiency.

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Average number of days

Based on the provided data for Robert Half Inc, the Days of Sales Outstanding (DSO) ratio has shown a fluctuating trend over the past five years. Initially, in 2019, the DSO was at 50.04 days, and then slightly increased in 2020 to 51.02 days. The trend continued to rise in 2021, reaching 55.62 days, but improved in the subsequent years, with 2022 showing 51.35 days and 2023 reporting the lowest DSO at 49.15 days.

The Days of Inventory on Hand (DOH) and Number of Days of Payables ratios have not been provided for analysis, which limits a comprehensive assessment of Robert Half Inc's activity ratios. However, focusing on the DSO ratio alone, the decreasing trend from 2021 to 2023 indicates a more efficient collection of accounts receivable over time. This trend suggests an improvement in the company's cash flow management and potentially better credit policies or collection processes.

Further insights could be gained by examining the trends in DOH and Days of Payables to understand the overall efficiency of Robert Half Inc's working capital management and its impact on the company's liquidity and operational performance.

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Long-term

The fixed asset turnover ratio for Robert Half Inc has been relatively stable over the past five years, ranging from 46.52 to 69.18. This indicates that the company is generating significant revenue relative to its investment in fixed assets each year.

On the other hand, the total asset turnover ratio has shown some variation, with values ranging from 2.00 to 2.63. This ratio reflects the company's ability to generate sales from its total assets. Although there has been some fluctuation, the ratio has generally been above 2, indicating that Robert Half Inc efficiently utilizes its total assets to generate revenue.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that Robert Half Inc effectively manages its assets to drive sales and generate revenue.