Robert Half International Inc (RHI)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,416,490	7,246,150	6,461,640	5,110,340	6,079,560
Total current assets	US$ in thousands	2,297,140	2,285,110	2,268,550	1,842,740	1,628,850
Total current liabilities	US$ in thousands	1,235,110	1,216,200	1,358,670	1,046,630	940,692
Working capital turnover		6.04	6.78	7.10	6.42	8.83

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,416,490K ÷ ($2,297,140K – $1,235,110K)
= 6.04

The working capital turnover ratio of Robert Half Inc has shown some fluctuation over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher ratio suggests that the company is effectively managing its working capital.

Observing the trend over the years, we can see that the working capital turnover ratio was highest in 2019 at 8.83, indicating strong efficiency in utilizing working capital for revenue generation. However, there was a noticeable decrease in the ratio in 2020 to 6.42, possibly indicating a less efficient utilization of working capital that year.

In 2021, the working capital turnover ratio increased to 7.10, showing improvement in working capital management efficiency. This trend continued in 2022 with a further increase to 6.77. However, in 2023, there was a slight decrease in the ratio to 6.02, indicating a potential dip in efficiency in utilizing working capital for generating revenue.

Overall, the trend in the working capital turnover ratio for Robert Half Inc suggests fluctuations in the efficiency of utilizing working capital for revenue generation over the past five years, with some years showing improvement and others displaying a slight decline. Further analysis of the company's financial and operational strategies may be necessary to understand the underlying reasons behind these fluctuations and to identify potential areas for improvement.