Robert Half International Inc (RHI)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Robert Half International Inc:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.
- Robert Half's inventory turnover has been relatively stable, ranging from 6.74 to 11.07 over the past few years.
- A higher turnover implies efficient inventory management, but the significant increase to 103.28 on September 30, 2024, might indicate a sudden decrease in inventory levels or increase in sales.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company manages its credit sales and collection processes.
- Robert Half's receivables turnover has been consistent, ranging from 5.96 to 7.45 over the reporting periods.
- The stable turnover ratio indicates the company has been effective in collecting payments on credit sales.

3. Payables Turnover:
- Unfortunately, there is no data available for the payables turnover ratio which measures how quickly a company pays its suppliers.
- Lack of information makes it challenging to assess Robert Half's payment practices and their relationship with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently a company utilizes its working capital to generate revenue.
- Robert Half has maintained a relatively consistent working capital turnover, ranging from 6.04 to 7.21 over the reporting periods.
- The stability in this ratio indicates the company's ability to effectively utilize its working capital to support its operations.

Overall, Robert Half International Inc appears to have maintained stable activity ratios, reflecting efficient management of inventory, receivables, and working capital. However, the absence of data on payables turnover limits a comprehensive analysis of the company's overall working capital management.

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Average number of days

For Robert Half International Inc, let's analyze the activity ratios based on the provided data:

1. Days of Inventory on Hand (DOH):
- The DOH shows the number of days the company takes to sell its inventory.
- The trend for DOH over the years fluctuates, with a peak of 54.16 days on March 31, 2021, and a low of 3.53 days on September 30, 2024.
- An increasing trend in DOH could signify slower inventory turnover, tying up funds in inventory for longer periods.

2. Days of Sales Outstanding (DSO):
- DSO indicates the average number of days it takes the company to collect payment after a sale.
- DSO has ranged from 42.56 days on June 30, 2020, to 61.22 days on September 30, 2021.
- A longer DSO could indicate issues with credit policies or difficulties in collecting outstanding payments promptly.

3. Number of Days of Payables:
- The data provided does not have information on the number of days of payables for Robert Half International Inc.
- Days of payables would have indicated the average number of days the company takes to pay its suppliers.
- Lower days of payables could suggest early payment discounts being taken, while higher days may indicate cash flow issues or strained supplier relationships.

In conclusion, monitoring and managing these activity ratios are essential for Robert Half International Inc to ensure efficient operations, effective cash flow management, and overall financial health. A balance between these ratios is crucial to optimize working capital and maximize profitability.

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Long-term

The Fixed Asset Turnover ratio of Robert Half International Inc has shown a declining trend over the past few quarters, indicating that the company is generating fewer sales relative to its investment in fixed assets. The ratio decreased from 48.31 in March 2020 to 48.53 in December 2024. This suggests that the company may need to review its utilization of fixed assets to improve efficiency and productivity.

On the other hand, the Total Asset Turnover ratio has fluctuated over the same period, reaching a peak of 2.50 in September 2022 before declining to 2.03 in December 2024. This ratio measures the company's ability to generate sales from its total assets. The fluctuations in this ratio may reflect changes in the company's sales volume relative to its total asset base.

Overall, the trends in both ratios indicate that Robert Half International Inc may need to focus on optimizing its asset utilization and sales generation efficiency to enhance its long-term operational performance and profitability.