GXO Logistics Inc (GXO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | 63.21 |
The provided data for GXO Logistics Inc's activity ratios shows the following:
1. Inventory Turnover: The information for inventory turnover is not available for the years 2020 to 2024, as indicated by "—". This ratio typically measures how efficiently a company manages its inventory by indicating the number of times the inventory is sold and replaced during a period.
2. Receivables Turnover: Data for receivables turnover is also not provided for the years 2020 to 2024. Receivables turnover ratio is used to assess how effectively a company is managing its credit sales and collecting payments from customers.
3. Payables Turnover: There is no data available for payables turnover for the years 2020 to 2024. Payables turnover ratio helps in evaluating how efficiently a company pays its suppliers and manages its accounts payable.
4. Working Capital Turnover: The working capital turnover ratio for GXO Logistics Inc is 63.21 for the year ending December 31, 2020. This ratio indicates how effectively the company generates revenue relative to its working capital. A higher ratio generally suggests efficient utilization of working capital in generating sales.
In summary, while information on inventory turnover, receivables turnover, and payables turnover is not available, the working capital turnover ratio for 2020 indicates that GXO Logistics Inc was able to generate significant revenue relative to its working capital that year. Additional data for subsequent years would be required to assess the trend and overall efficiency of the company's activity ratios.
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for GXO Logistics Inc, the activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, are not available for the years ending December 31, 2020 through December 31, 2024.
The Days of Inventory on Hand ratio indicates the average number of days it takes for a company to sell its inventory. A lower DOH is preferable as it signifies efficient inventory management.
The Days of Sales Outstanding ratio reflects how long it takes for a company to collect payment after making a sale. A lower DSO suggests effective accounts receivable management.
The Number of Days of Payables ratio shows the average number of days a company takes to pay its suppliers. A higher number of days of payables may indicate that the company is effectively using trade credit to manage cash flow.
Without the specific data for these ratios, it is challenging to assess GXO Logistics Inc's efficiency in managing its inventory, receivables, and payables over the specified years. Further information would be required to evaluate the company's operational performance in this regard.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.82 | 3.01 | 2.81 |
| Total asset turnover | 1.04 | 1.03 | 0.98 | 1.09 | 0.95 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of GXO Logistics Inc:
1. Fixed Asset Turnover:
- In 2020, the fixed asset turnover ratio was 2.81, indicating that for every dollar invested in fixed assets, the company generated $2.81 in revenue.
- By 2021, the ratio improved to 3.01, showing increased efficiency in the utilization of fixed assets.
- However, in 2022, the ratio slightly decreased to 2.82, suggesting a slight dip in the efficiency of fixed asset utilization.
- There is no data available for 2023 and 2024, which limits the ability to assess the trend in fixed asset turnover for those years.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how effectively a company is using all its assets to generate revenue.
- GXO Logistics Inc saw an improvement in total asset turnover from 2020 to 2021, with the ratio increasing from 0.95 to 1.09.
- In 2022, the ratio decreased to 0.98, indicating a lower level of efficiency in asset utilization compared to the previous year.
- However, there was a slight improvement in 2023 and 2024, with the total asset turnover ratios rising to 1.03 and 1.04 respectively.
Overall, the trend indicates fluctuating efficiency in utilizing both fixed and total assets to generate revenue over the years analyzed, showing periods of improvement and decline in asset turnover ratios. More data for the years 2023 and 2024 would provide a clearer picture of the company's long-term activity ratios.