GXO Logistics Inc (GXO)

Short-term

Turnover ratios

Based on the provided data for GXO Logistics Inc's activity ratios:

1. Inventory Turnover: Unfortunately, there is no information available for the inventory turnover ratio for any of the quarters provided. This ratio typically measures how efficiently a company is managing its inventory, with a higher turnover indicating better inventory management.

2. Receivables Turnover: The receivables turnover ratio for GXO Logistics Inc has been relatively stable over the quarters, ranging from 5.46 to 5.81. This ratio reflects how many times, on average, the company collects its accounts receivable during a period. A higher turnover implies that the company is efficient in collecting payments from its customers.

3. Payables Turnover: The data shows a zero value for the payables turnover ratio across all quarters. This could indicate that the company may not have significant payables or that there is no data available for this metric. The payables turnover ratio typically measures how quickly a company pays its suppliers.

4. Working Capital Turnover: Based on the available data, GXO Logistics Inc had a working capital turnover of 301.72 in Q3 2023. This ratio assesses how efficiently the company is utilizing its working capital to generate revenue. A higher ratio suggests that the company is effectively using its working capital.

In conclusion, while the information on inventory turnover and payables turnover is lacking, the stable performance of the receivables turnover ratio and the significant working capital turnover in Q3 2023 indicate that GXO Logistics Inc is managing its current assets efficiently to support its operations and growth.

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Average number of days

The activity ratios of GXO Logistics Inc, as represented by Days of Sales Outstanding (DSO) and Days of Inventory on Hand (DOH), provide insights into the efficiency of the company's operations.

1. Days of Sales Outstanding (DSO):
- DSO is a measure of how efficiently the company is collecting its accounts receivable. In this case, DSO has been fluctuating over the quarters, ranging from 62.79 days to 66.85 days.
- A lower DSO indicates that GXO Logistics Inc is collecting payments from customers more quickly, enhancing cash flow and potentially reducing bad debt risk.
- The recent trend of fluctuating DSO values suggests a need for consistent attention to managing accounts receivable to maintain optimal collections and cash flow efficiency.

2. Days of Inventory on Hand (DOH):
- Unfortunately, data for DOH is not available for the quarters provided. DOH measures how many days it takes for the company to sell its entire inventory.
- Without this data, it is challenging to assess the effectiveness of inventory management practices at GXO Logistics Inc.
- Having a low DOH generally indicates strong inventory management, as excess inventory ties up resources and may lead to obsolescence and storage costs.

In conclusion, based on the available DSO data, GXO Logistics Inc could potentially benefit from further analysis and optimization in managing its accounts receivable to enhance cash flow efficiency. Further information on DOH would provide a more comprehensive understanding of the company's inventory management efficiency.

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Long-term

The fixed asset turnover ratio for GXO Logistics Inc has been relatively stable over the past five quarters, ranging from 9.37 to 10.46. This indicates that the company generates between $9.37 to $10.46 in revenue for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also shown consistency, fluctuating between 0.98 to 1.06 during the same period. This ratio signifies that GXO Logistics Inc generates between $0.98 to $1.06 in revenue for every dollar of total assets owned.

Overall, the company's ability to efficiently utilize both fixed and total assets to generate revenue appears to be strong and relatively steady, indicating effective asset management in its operations.