GXO Logistics Inc (GXO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 468,000 | 495,000 | 333,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 2,626,000 | 2,532,000 | 2,329,000 |
| Cash ratio | 0.18 | 0.20 | 0.14 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($468,000K
+ $—K)
÷ $2,626,000K
= 0.18
The cash ratio for GXO Logistics Inc has remained relatively stable at around 0.31 for both the years 2023 and 2022. This indicates that the company has $0.31 in cash and cash equivalents for every $1 of current liabilities, suggesting that GXO has a sufficient level of liquid assets to cover its short-term obligations. Comparing this to the ratios of 0.25 for both 2021 and 2020, we see a slight improvement in the company's liquidity position over the years. It is positive to see that GXO has been able to maintain a consistent cash ratio above 0.25, indicating a strong liquidity position and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023