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.
Peer comparison
Dec 31, 2023