GXO Logistics Inc (GXO)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,641,000 | 2,568,000 | 2,428,000 | 2,099,000 | 1,836,000 |
| Total current liabilities | US$ in thousands | 3,189,000 | 2,626,000 | 2,532,000 | 2,329,000 | 1,738,000 |
| Current ratio | 0.83 | 0.98 | 0.96 | 0.90 | 1.06 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,641,000K ÷ $3,189,000K
= 0.83
The current ratio of GXO Logistics Inc has exhibited some fluctuations over the past five years. As of December 31, 2020, the company's current ratio stood at 1.06, indicating that GXO had $1.06 in current assets to cover each dollar of current liabilities. However, by the end of December 31, 2021, the current ratio decreased to 0.90, suggesting a potential strain on the company's short-term liquidity position.
Despite the decline in 2021, GXO Logistics Inc demonstrated a slight improvement in its current ratio in the following years. As of December 31, 2022, the current ratio rose to 0.96, further increasing to 0.98 by December 31, 2023. This upward trend signifies a better ability for GXO to meet its short-term obligations with its current assets.
Nevertheless, by the end of December 31, 2024, the current ratio dropped to 0.83, indicating a potential challenge for GXO in managing its current liabilities with available current assets. The decreasing trend in 2024 may raise concerns about the company's short-term liquidity position and its ability to handle current financial obligations.
In summary, GXO Logistics Inc's current ratio has shown varying levels of short-term liquidity over the years, signaling fluctuations in the company's ability to cover current liabilities with current assets. It is essential for the company to closely monitor its current ratio to ensure a healthy balance between liquidity and financial obligations.
Peer comparison
Dec 31, 2024