GXO Logistics Inc (GXO)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Mar 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	2,641,000	2,959,000	2,797,000	2,463,000	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	2,034,000	1,836,000
Total current liabilities	US$ in thousands	3,189,000	3,432,000	3,269,000	2,625,000	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	1,894,000	1,738,000
Current ratio		0.83	0.86	0.86	0.94	0.98	1.01	0.96	0.95	0.96	0.99	0.95	0.96	0.90	0.87	0.98	1.07	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 fluctuated over the periods provided, ranging from a low of 0.83 as of December 31, 2024, to a high of 1.07 as of March 31, 2021. Generally, a current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone.

The trend in GXO Logistics' current ratio shows a slight improvement from the low points in late 2023 and early 2024. However, as of December 31, 2024, the current ratio decreased to 0.83, which may signal potential liquidity concerns. A current ratio below 1 may suggest that the company is reliant on short-term borrowing or is facing challenges in managing its current liabilities.

It is essential for GXO Logistics Inc to closely monitor its current ratio and assess its ability to cover short-term liabilities using its current assets effectively. Strategies to improve liquidity and strengthen financial health may be necessary to ensure the company's continued operational stability.