GXO Logistics Inc (GXO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 9,725,000 | 8,964,000 | 7,919,000 |
| Receivables | US$ in thousands | 1,753,000 | 1,647,000 | 1,962,000 |
| Receivables turnover | 5.55 | 5.44 | 4.04 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,725,000K ÷ $1,753,000K
= 5.55
The receivables turnover ratio for GXO Logistics Inc has been showing a positive trend over the past four years, indicating the company's efficiency in collecting its accounts receivable. The ratio has steadily increased from 4.83 in 2020 to 5.58 in 2023, reflecting an improvement in the company's ability to collect outstanding receivables.
A higher receivables turnover ratio suggests that GXO Logistics is collecting its accounts receivable more frequently within a given period, which is generally a positive indication of effective credit management and timely collection efforts. This trend demonstrates the company's strength in managing its receivables and converting credit sales into cash efficiently.
Overall, the increasing trend in receivables turnover for GXO Logistics Inc implies a favorable financial position and operational effectiveness in managing its accounts receivable, which is a key aspect of maintaining liquidity and financial stability.
Peer comparison
Dec 31, 2023