GXO Logistics Inc (GXO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | — | — | — |
| Receivables turnover | 5.55 | 5.44 | 4.04 |
| Payables turnover | 12.93 | 12.12 | 12.32 |
| Working capital turnover | — | — | — |
Based on the provided data for GXO Logistics Inc, I can see that for the years ending December 31 in 2023, 2022, 2021, and 2020, the activity ratios are as follows:
1. Receivables Turnover:
- Dec 31, 2023: 5.58 times
- Dec 31, 2022: 5.46 times
- Dec 31, 2021: 5.27 times
- Dec 31, 2020: 4.83 times
The receivables turnover ratio demonstrates how effectively the company is able to collect payments from customers. GXO Logistics Inc has shown a consistent improvement in its receivables turnover over the years, indicating that the company is collecting payments from customers more efficiently each year.
2. Payables Turnover:
- Dec 31, 2023: 0.00 times
- Dec 31, 2022: 0.00 times
- Dec 31, 2021: 0.00 times
- Dec 31, 2020: 0.00 times
The payables turnover ratio is used to evaluate how quickly a company pays its suppliers. In this case, the lack of data for payables turnover suggests that information regarding the company's payment practices towards suppliers is not available or not applicable.
3. Inventory Turnover and Working Capital Turnover:
Unfortunately, the data for Inventory Turnover and Working Capital Turnover is missing for all years provided. These ratios are essential for evaluating the efficiency of inventory management and the utilization of working capital in the company but cannot be analyzed based on the information given.
In conclusion, while GXO Logistics Inc has shown improvement in its receivables turnover ratio over the years, the absence of data for inventory turnover, payables turnover, and working capital turnover limits a comprehensive analysis of the company's overall activity efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — |
| Days of sales outstanding (DSO) | days | 65.79 | 67.06 | 90.43 |
| Number of days of payables | days | 28.23 | 30.12 | 29.62 |
Based on the data provided for GXO Logistics Inc, we can analyze the activity ratios as follows:
1. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding (DSO) measures how many days, on average, it takes for a company to collect its accounts receivable. Lower DSO is generally better as it indicates a faster collection of receivables.
- Over the past four years, GXO Logistics Inc's DSO has shown mixed performance. It has decreased from 75.55 days in 2020 to 65.44 days in 2023, indicating an improvement in collecting receivables more promptly.
2. Days of Inventory on Hand (DOH):
- Unfortunately, the data provided does not include information on the Days of Inventory on Hand (DOH) for GXO Logistics Inc. DOH measures how many days, on average, a company holds its inventory before it is sold. A lower DOH is generally preferable as it indicates efficient inventory management.
3. Number of Days of Payables:
- The data does not include information on the Number of Days of Payables for GXO Logistics Inc. This ratio would assess how long a company takes to pay its bills, with a longer period indicating better cash flow management.
In summary, GXO Logistics Inc has shown some improvement in its Days of Sales Outstanding (DSO) over the years, suggesting enhanced efficiency in collecting receivables. However, without the data for Days of Inventory on Hand (DOH) and Number of Days of Payables, a comprehensive analysis of the company's overall working capital management and cash flow cycle efficiency is limited.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | 11.50 | 10.71 | 11.19 |
| Total asset turnover | 1.02 | 0.97 | 1.09 |
The long-term activity ratios of GXO Logistics Inc depict the company's efficiency in managing its fixed and total assets to generate revenue over the years.
The fixed asset turnover indicates that GXO Logistics Inc generated $10.26 of revenue for every $1 invested in fixed assets in 2023, showing an improvement from 2022 and 2021. This suggests that the company is effectively utilizing its fixed assets to drive sales and production.
On the other hand, the total asset turnover reflects the company's ability to generate revenue from all assets, including fixed and current assets. A total asset turnover of 1.03 in 2023 indicates that GXO Logistics Inc generated $1.03 in revenue for every $1 of total assets, reflecting a slight increase from the previous year. This signifies that the company efficiently utilizes its total assets to support its sales activities.
Overall, the improving trend in both fixed asset turnover and total asset turnover ratios suggests that GXO Logistics Inc is effectively managing its assets to drive revenue growth and operational efficiency in the long term.