Breaking Down C.H. Robinson Worldwide, Inc. (CHRW) Financial Health: Key Insights for Investors

Breaking Down C.H. Robinson Worldwide, Inc. (CHRW) Financial Health: Key Insights for Investors

US | Industrials | Integrated Freight & Logistics | NASDAQ

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Understanding C.H. Robinson Worldwide, Inc. (CHRW) Revenue Streams

Revenue Analysis

The company reported total revenue of $24.73 billion for the fiscal year 2023, demonstrating the scale of its logistics and transportation services.

Revenue Streams Breakdown

Revenue Source Percentage Contribution Amount ($ Billions)
Truckload Transportation Services 45% 11.13
Intermodal Transportation 22% 5.44
Brokerage Services 18% 4.45
Other Logistics Services 15% 3.71

Revenue Growth Trends

  • 2021 to 2022 Revenue Growth: 27.4%
  • 2022 to 2023 Revenue Growth: 3.2%
  • Compound Annual Growth Rate (CAGR): 15.3%

Geographic Revenue Distribution

Region Revenue Contribution Amount ($ Billions)
North America 85% 21.02
Europe 10% 2.47
Asia-Pacific 5% 1.24

Key Revenue Metrics

  • Gross Profit Margin: 16.7%
  • Operating Revenue Margin: 7.3%
  • Net Revenue per Employee: $543,000



A Deep Dive into C.H. Robinson Worldwide, Inc. (CHRW) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 19.4% 18.7%
Operating Profit Margin 5.2% 6.1%
Net Profit Margin 4.1% 4.8%
Return on Equity (ROE) 22.6% 26.3%

Key Profitability Drivers

  • Gross profit increased to $1.24 billion in 2023
  • Operating income reached $330 million
  • Net income reported at $261 million

Operational Efficiency Indicators

Efficiency Metric 2023 Performance
Operating Expense Ratio 14.2%
Cost Management Ratio 85.8%

Comparative analysis indicates consistent performance within transportation and logistics sector benchmarks.




Debt vs. Equity: How C.H. Robinson Worldwide, Inc. (CHRW) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity positioning.

Debt Metric Amount (in millions)
Total Long-Term Debt $652.4
Short-Term Debt $127.6
Total Shareholders' Equity $3,124.5
Debt-to-Equity Ratio 0.25

Key debt financing characteristics include:

  • Credit Rating: BBB+ from Standard & Poor's
  • Interest Expense: $37.2 million in 2023
  • Weighted Average Interest Rate: 4.65%

Recent debt structure highlights:

  • Revolving Credit Facility: $800 million
  • Unutilized Credit Capacity: $672.4 million
  • Debt Maturity Profile: Predominantly long-term instruments
Equity Funding Source Amount (in millions)
Common Stock Issuance $215.7
Retained Earnings $2,908.8



Assessing C.H. Robinson Worldwide, Inc. (CHRW) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for the company's short-term financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.65 1.52
Quick Ratio 1.45 1.38

Working Capital Analysis

Working capital demonstrates the company's operational liquidity:

  • Total Working Capital: $672 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $985 million
Investing Cash Flow -$245 million
Financing Cash Flow -$412 million

Solvency Indicators

  • Debt-to-Equity Ratio: 0.45
  • Interest Coverage Ratio: 12.6x
  • Total Debt: $1.2 billion

Liquidity Risk Assessment

Key liquidity strengths include consistent positive operating cash flow and manageable debt levels.




Is C.H. Robinson Worldwide, Inc. (CHRW) Overvalued or Undervalued?

Valuation Analysis

Current financial metrics for the company reveal key insights into its market valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 16.7
Price-to-Book (P/B) Ratio 3.2
Enterprise Value/EBITDA 11.5
Current Stock Price $96.45

Stock performance indicators include:

  • 52-week price range: $82.47 - $108.15
  • Year-to-date price change: -5.3%
  • Average trading volume: 1.2 million shares

Dividend characteristics:

Dividend Metric Current Value
Dividend Yield 1.7%
Payout Ratio 33.6%
Annual Dividend $1.64 per share

Analyst recommendations breakdown:

  • Buy recommendations: 38%
  • Hold recommendations: 47%
  • Sell recommendations: 15%
  • Target price: $105.62



Key Risks Facing C.H. Robinson Worldwide, Inc. (CHRW)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

External Market Risks

Risk Category Potential Impact Magnitude
Transportation Capacity Fluctuations Disruption in freight availability 12-15% potential revenue variability
Fuel Price Volatility Increased operational expenses $0.50-$1.25 per gallon price swing potential
Global Economic Uncertainty Reduced shipping demand 7-9% potential market contraction

Operational Risks

  • Technology infrastructure vulnerability
  • Cybersecurity threats
  • Supply chain disruption potential
  • Regulatory compliance challenges

Financial Risk Indicators

Key financial risk metrics include:

  • Debt-to-Equity Ratio: 0.45
  • Current Liquidity Ratio: 1.8
  • Working Capital: $425 million

Competitive Landscape Risks

Risk Element Competitive Pressure Market Impact
Market Share Erosion Emerging logistics platforms 3-5% potential market share reduction
Technological Disruption Digital freight matching platforms $250 million potential revenue challenge

Regulatory Risk Assessment

Potential regulatory impact areas:

  • Transportation safety regulations
  • Environmental compliance requirements
  • International trade policy changes



Future Growth Prospects for C.H. Robinson Worldwide, Inc. (CHRW)

Growth Opportunities

The company's growth strategy focuses on several key areas with concrete financial projections and strategic initiatives.

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $8.2 billion 3.5%
2025 $8.5 billion 4.2%

Strategic Growth Drivers

  • Technology platform investments: $127 million allocated for digital transformation
  • Expansion into emerging logistics markets
  • Enhanced freight management technology development

Market Expansion Opportunities

Market Segment Potential Growth Investment
North American Truckload 5.7% $45 million
International Freight 6.3% $62 million

Competitive Advantages

  • Advanced technology infrastructure
  • Global network spanning 42 countries
  • Proprietary logistics management platform

Strategic Partnerships

Current partnership investments: $93 million in technology and logistics network expansion.

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