Robert Half International Inc (RHI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 8.98 | 11.07 | 9.39 | — |
| Receivables turnover | 7.50 | 7.45 | 7.12 | 6.56 | 7.16 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 6.87 | 6.04 | 6.78 | 7.10 | 6.42 |
The activity ratios of Robert Half International Inc provide insights into how efficiently the company manages its assets and liabilities.
1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. In 2021, Robert Half International Inc had an inventory turnover of 9.39, indicating that the company sold and replaced its inventory approximately 9.39 times during the year. This ratio increased to 11.07 in 2022, suggesting an improvement in inventory management efficiency. However, in 2023, the ratio decreased to 8.98, which may indicate a slower turnover of inventory during that period.
2. Receivables Turnover:
- The receivables turnover ratio reflects how many times a company collects its accounts receivable in a given period. Robert Half International Inc had a receivables turnover of 7.16 in 2020, which dropped slightly to 6.56 in 2021 before increasing to 7.12 in 2022 and further to 7.45 in 2023. This indicates that the company was able to collect its accounts receivable more efficiently over time.
3. Payables Turnover:
- The payables turnover ratio is not available for Robert Half International Inc in the provided data, which may imply that the company does not have significant amounts of accounts payable or does not disclose this information.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company generates revenue relative to its working capital. Robert Half International Inc had a working capital turnover of 6.42 in 2020, which increased to 7.10 in 2021, indicating an improvement in utilizing working capital to generate revenue. The ratio slightly decreased to 6.78 in 2022, but then increased to 6.87 in 2024, showing relatively consistent performance in converting working capital into sales.
Overall, the activity ratios of Robert Half International Inc indicate a generally effective management of inventory, accounts receivable, and working capital, with room for potential improvements in certain areas to enhance operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 40.66 | 32.99 | 38.88 | — |
| Days of sales outstanding (DSO) | days | 48.64 | 48.97 | 51.29 | 55.62 | 51.01 |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Robert Half International Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- December 31, 2020: Not provided
- December 31, 2021: 38.88 days
- December 31, 2022: 32.99 days
- December 31, 2023: 40.66 days
- December 31, 2024: Not provided
The trend in DOH shows a fluctuation in the number of days it takes for Robert Half International to sell its inventory. The decrease from 2021 to 2022 suggests that the company is managing its inventory more efficiently, but the increase in 2023 indicates possible inefficiencies.
2. Days of Sales Outstanding (DSO):
- December 31, 2020: 51.01 days
- December 31, 2021: 55.62 days
- December 31, 2022: 51.29 days
- December 31, 2023: 48.97 days
- December 31, 2024: 48.64 days
The trend in DSO indicates the average number of days it takes for Robert Half International to collect its accounts receivable. The decreasing trend from 2021 to 2024 suggests that the company is becoming more efficient in collecting payments from customers.
3. Number of Days of Payables:
- December 31, 2020 to December 31, 2024: Not provided
Since the data for the number of days of payables is not provided, it is unclear how long Robert Half International takes to pay its suppliers.
In conclusion, the analysis of the activity ratios for Robert Half International Inc suggests mixed efficiency in managing inventory and collecting payments from customers. Further data on payables would provide a more comprehensive picture of the company's overall liquidity and operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 48.47 | 58.97 | 66.06 | 69.18 | 46.54 |
| Total asset turnover | 2.03 | 2.13 | 2.44 | 2.19 | 2.00 |
Robert Half International Inc's fixed asset turnover ratio has shown a fluctuating trend over the period from December 31, 2020, to December 31, 2024. The ratio increased from 46.54 in 2020 to 69.18 in 2021, indicating that the company generated $69.18 in revenue for each dollar invested in fixed assets. However, the ratio decreased to 66.06 in 2022, 58.97 in 2023, and further to 48.47 in 2024.
On the other hand, the total asset turnover ratio of Robert Half International Inc has been relatively stable over the same period. The ratio was 2.00 in 2020, increased to 2.19 in 2021, reached its peak at 2.44 in 2022, but then declined to 2.13 in 2023 and 2.03 in 2024. This ratio indicates how efficiently the company is utilizing its total assets to generate revenue, with higher values suggesting better performance in asset utilization.
Overall, the fixed asset turnover ratio reflects the efficiency of Robert Half International Inc in generating revenue from its fixed assets, while the total asset turnover ratio illustrates the company's effectiveness in using all its assets to drive revenue. The fluctuations in these ratios over the years may indicate changes in the company's asset management strategies and operational efficiency.