GXO Logistics Inc (GXO)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,568,000 | 2,466,000 | 2,306,000 | 2,311,000 | 2,428,000 | 2,242,000 | 2,256,000 | 2,030,000 | 2,099,000 | 1,958,000 | 1,963,000 |
| Total current liabilities | US$ in thousands | 2,626,000 | 2,434,000 | 2,403,000 | 2,421,000 | 2,532,000 | 2,275,000 | 2,364,000 | 2,122,000 | 2,329,000 | 2,245,000 | 2,009,000 |
| Current ratio | 0.98 | 1.01 | 0.96 | 0.95 | 0.96 | 0.99 | 0.95 | 0.96 | 0.90 | 0.87 | 0.98 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,568,000K ÷ $2,626,000K
= 0.98
The current ratio of GXO Logistics Inc has fluctuated over the past five quarters, ranging from 0.95 to 1.01. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio below 1 indicates that the company may have difficulties meeting its short-term obligations, while a ratio above 1 suggests that it has more current assets than current liabilities.
In Q3 2023, the current ratio improved to 1.01, indicating a better ability to cover short-term liabilities compared to the previous quarters. However, in Q4 2023, the ratio declined to 0.98, which is below the industry standard of 1. This may raise concerns about the company's liquidity and its ability to meet immediate financial obligations.
Overall, the trend in the current ratio of GXO Logistics Inc shows some variability, with occasional improvements but also periods of lower liquidity. Further analysis of the company's current assets and liabilities is recommended to fully understand the factors contributing to these fluctuations in the current ratio.
Peer comparison
Dec 31, 2023