GXO Logistics Inc (GXO)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 413,000 468,000 495,000 333,000 328,000
Short-term investments US$ in thousands 2,000
Total current liabilities US$ in thousands 3,189,000 2,626,000 2,532,000 2,329,000 1,738,000
Cash ratio 0.13 0.18 0.20 0.14 0.19

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($413,000K + $—K) ÷ $3,189,000K
= 0.13

The cash ratio of GXO Logistics Inc has fluctuated over the past five years. As of December 31, 2020, the cash ratio was 0.19, indicating that the company had $0.19 in cash and cash equivalents for every $1 of current liabilities. By December 31, 2021, the cash ratio had decreased to 0.14, implying a lower liquidity position compared to the previous year.

However, there was a slight improvement by December 31, 2022, with the cash ratio increasing to 0.20. This suggests that GXO Logistics had a stronger ability to cover its short-term obligations with cash on hand. The trend reversed in the following year, as of December 31, 2023, when the cash ratio dropped to 0.18, indicating a slight decrease in liquidity.

As of the most recent year ending December 31, 2024, the cash ratio further decreased to 0.13, highlighting a potential liquidity concern for GXO Logistics Inc. Overall, the company's cash ratio fluctuated over the five-year period, showing both improvements and declines in its ability to meet short-term obligations with available cash resources.