GXO Logistics Inc (GXO)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,709,000 | 9,778,000 | 8,993,000 | 7,940,000 | 6,195,000 |
| Total assets | US$ in thousands | 11,266,000 | 9,507,000 | 9,219,000 | 7,271,000 | 6,548,000 |
| Total asset turnover | 1.04 | 1.03 | 0.98 | 1.09 | 0.95 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,709,000K ÷ $11,266,000K
= 1.04
Based on the provided data, GXO Logistics Inc's total asset turnover has shown some fluctuations over the five-year period from 2020 to 2024. The total asset turnover ratio measures the efficiency of the company in generating revenue from its assets.
- In 2020, the total asset turnover ratio was 0.95, indicating that the company generated $0.95 in revenue for every dollar of assets it owned.
- In 2021, the ratio improved to 1.09, suggesting that the company increased its efficiency in generating revenue from its assets.
- By 2022, the ratio decreased slightly to 0.98, which may imply a reduction in the effectiveness of asset utilization in generating sales.
- However, in 2023 and 2024, the total asset turnover ratio improved to 1.03 and 1.04, respectively, indicating a better utilization of assets to drive revenue.
Overall, the trend over the five years shows some variability in asset turnover, with periods of improvement and slight decline. It is essential for GXO Logistics Inc to maintain a consistent and efficient use of its assets to generate revenue effectively.
Peer comparison
Dec 31, 2024