Robert Half International Inc (RHI)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,795,840	6,416,490	7,246,150	6,461,640	5,110,340
Total current assets	US$ in thousands	2,129,420	2,297,140	2,285,110	2,268,550	1,842,740
Total current liabilities	US$ in thousands	1,285,740	1,235,110	1,216,200	1,358,670	1,046,630
Working capital turnover		6.87	6.04	6.78	7.10	6.42

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,795,840K ÷ ($2,129,420K – $1,285,740K)
= 6.87

Based on the provided data, Robert Half International Inc's working capital turnover has shown a fluctuating trend over the past five years. The working capital turnover ratio is a measure of how effectively a company manages its working capital to generate sales revenue.

In 2020, the working capital turnover was 6.42, indicating that the company generated $6.42 in revenue for every dollar of working capital invested. The ratio increased to 7.10 in 2021, suggesting improved efficiency in utilizing working capital to drive sales.

However, in 2022, the ratio decreased slightly to 6.78, before dropping further to 6.04 in 2023. This decline may signal challenges in efficiently converting working capital into revenue during those years.

In the most recent year, 2024, the working capital turnover rebounded to 6.87, showing a potential turnaround in the company's working capital management efficiency.

Overall, Robert Half International Inc's working capital turnover has demonstrated variability over the five-year period, with both improvements and setbacks in effectively utilizing working capital to generate sales revenue. Further analysis of the factors affecting working capital efficiency would be beneficial to understand the underlying reasons for these fluctuations.