GXO Logistics Inc (GXO)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Total current assets	US$ in thousands	2,568,000	2,428,000	2,099,000
Total current liabilities	US$ in thousands	2,626,000	2,532,000	2,329,000
Current ratio		0.98	0.96	0.90

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,568,000K ÷ $2,626,000K
= 0.98

The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.

For GXO Logistics Inc:
- The current ratio has been fluctuating over the past four years, ranging from 0.90 in 2021 to 0.98 in 2023.
- The current ratio improved from 0.93 in 2020 to 0.98 in 2023, suggesting an increase in the company's ability to cover short-term obligations with current assets.
- It's important to note that the current ratio of less than 1 in all years indicates that GXO Logistics Inc may have had difficulties meeting its short-term obligations solely with its current assets.
- While the improvement in the current ratio is positive, the company may still need to carefully manage its liquidity to mitigate liquidity risks and ensure financial health in the future.