GXO Logistics Inc (GXO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 10,720.55 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | 301.72 | — | — | — | — | — | — | — | — | — | 46.98 | 63.21 |
Based on the provided data, the activity ratios of GXO Logistics Inc can be analyzed as follows:
1. Inventory Turnover:
- Inventory turnover for March 31, 2024, stands at 10,720.55, indicating that the company sold and replaced its inventory over 10,000 times during that period. However, data for other periods is unavailable, making it difficult to assess the trend over time.
2. Receivables Turnover:
- Data on receivables turnover is not provided for any period up to December 31, 2024, making it challenging to evaluate how efficiently the company is collecting on its credit sales.
3. Payables Turnover:
- The payables turnover ratio is not available for any period up to December 31, 2024, so it's not possible to determine how quickly the company is paying off its suppliers relative to its purchases.
4. Working Capital Turnover:
- The working capital turnover ratio fluctuates inconsistently over the periods where data is available. For example, working capital turnover was 63.21 on December 31, 2020, decreased to 46.98 on March 31, 2021, and then significantly increased to 301.72 by September 30, 2023. However, there is no data provided for the periods after March 31, 2024, which limits the ability to analyze the trend further.
In conclusion, the analysis of GXO Logistics Inc's activity ratios is hindered by the lack of data for key periods and ratios. Additional information and data points would be necessary to provide a more comprehensive assessment of the company's efficiency in managing its inventory, receivables, payables, and working capital turnover.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 0.03 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for GXO Logistics Inc, the Days of Inventory on Hand (DOH) ratio as of March 31, 2024, is 0.03 days. This indicates that the company holds very minimal inventory on hand, which could suggest strong inventory management practices, efficient supply chain operations, or a just-in-time inventory model.
For the Days of Sales Outstanding (DSO) ratio and Number of Days of Payables, there is not enough data provided to calculate these ratios for any period. Without this information, it is challenging to evaluate the efficiency of GXO Logistics Inc's accounts receivable collection and accounts payable management.
Overall, a low DOH ratio can be a positive sign of efficient inventory management, but without additional information on DSO and payables turnover, a comprehensive analysis of GXO Logistics Inc's activity ratios cannot be completed.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 3.16 | 3.00 | 2.95 | 2.82 | 2.96 | 3.02 | 3.15 | 3.01 | 2.82 | 2.73 | 2.58 | — |
| Total asset turnover | 1.04 | 0.93 | 0.91 | 1.06 | 1.03 | 1.06 | 1.04 | 1.02 | 0.98 | 1.00 | 0.97 | 1.15 | 1.09 | 1.04 | 1.00 | 0.92 | 0.95 |
The Fixed Asset Turnover ratio for GXO Logistics Inc has shown a generally increasing trend from March 2021 to March 2023, peaking at 3.16 in September 2023, indicating that the company generated $3.16 in revenue for every dollar invested in fixed assets at that point. However, the ratio declined in the subsequent quarters to 2.95 in March 2024. This suggests that the company may have experienced challenges in efficiently utilizing its fixed assets to generate revenue during this period.
On the other hand, the Total Asset Turnover ratio fluctuated over the same period, reaching a peak of 1.15 in March 2022 before gradually declining to 0.91 in June 2024. The ratio measures the company's efficiency in using its total assets to generate revenue, indicating that for every dollar in assets, the company generated $0.91 in revenue in June 2024. This decline may indicate a decrease in the company's overall efficiency in utilizing its assets to generate sales over time.
Overall, the long-term activity ratios suggest that GXO Logistics Inc experienced fluctuations in its ability to efficiently generate revenue from both its fixed and total assets during the analyzed period. The decline in both Fixed Asset Turnover and Total Asset Turnover ratios towards the end of the period may indicate a need for the company to review and optimize its asset management strategies to improve operational efficiency and profitability.