GXO Logistics Inc (GXO)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,725,000 | 9,604,000 | 9,428,000 | 9,195,000 | 8,964,000 | 8,764,000 | 8,452,000 | 8,181,000 |
| Property, plant and equipment | US$ in thousands | 846,000 | 812,000 | 841,000 | 839,000 | 837,000 | 791,000 | 760,000 | 697,000 |
| Fixed asset turnover | 11.50 | 11.83 | 11.21 | 10.96 | 10.71 | 11.08 | 11.12 | 11.74 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,725,000K ÷ $846,000K
= 11.50
The fixed asset turnover ratio measures how efficiently GXO Logistics Inc generates revenue from its investment in fixed assets. In the most recent quarter, Q4 2023, the fixed asset turnover was 10.26, indicating that the company generated $10.26 in revenue for every dollar invested in fixed assets during that period. This represents a slight decrease from the previous quarter but remains relatively high compared to historical values.
Consistently high fixed asset turnover ratios demonstrate that the company is effectively utilizing its fixed assets to generate sales. However, it is important to note that a very high fixed asset turnover ratio could also indicate that the company may be underinvesting in fixed assets, potentially affecting long-term growth and competitiveness. On the other hand, a low ratio may suggest inefficiencies in asset usage or overinvestment in fixed assets.
It is essential for GXO Logistics Inc to strike a balance in managing its fixed assets to optimize revenue generation while ensuring sustainable growth and operational efficiency. Monitoring changes in the fixed asset turnover ratio over time can provide insights into the company's asset utilization and operational effectiveness.
Peer comparison
Dec 31, 2023