GXO Logistics Inc (GXO)

Liquidity ratios

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
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
Quick ratio 0.13 0.00 0.14 0.32 0.18 0.19 0.13 0.18 0.20 0.19 0.16 0.15 0.14 0.12 1.57 0.22 0.19
Cash ratio 0.13 0.00 0.14 0.32 0.18 0.19 0.13 0.18 0.20 0.19 0.16 0.15 0.14 0.12 1.57 0.22 0.19

GXO Logistics Inc's liquidity ratios show a fluctuating trend over the recent periods. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been declining from 1.06 in December 2020 to 0.83 in December 2024. This downward trend indicates potential challenges in meeting immediate financial obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows variability. It increased to 1.57 in June 2021 but later dropped significantly to 0.00 in September 2024. This decrease could suggest a potential liquidity strain in the short term.

The cash ratio, which provides an even stricter measure by considering only cash and cash equivalents to cover current liabilities, has also fluctuated over time. While it reached a high of 1.57 in June 2021, it fell to 0.00 in September 2024, indicating a diminished ability to cover short-term obligations solely with cash on hand.

Overall, the liquidity ratios of GXO Logistics Inc demonstrate a need for monitoring and improvement in managing short-term cash flow and liquidity challenges to ensure the company's financial stability and capability to meet its obligations promptly.


Additional liquidity measure

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
Cash conversion cycle days 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Based on the provided data, GXO Logistics Inc has consistently maintained a very efficient cash conversion cycle over the past few years. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

It is noted that throughout the reported periods, GXO Logistics Inc has managed to keep its cash conversion cycle close to zero days, indicating that the company is able to quickly convert its resources into cash through its operational activities. This efficiency suggests that the company effectively manages its inventory, collects receivables promptly, and pays its suppliers efficiently.

A cash conversion cycle of close to zero days is a strong indicator of effective working capital management and liquidity. It shows that GXO Logistics Inc has a streamlined process for generating cash from its core business operations. Such a low cash conversion cycle also implies that the company is able to reinvest its cash and generate returns promptly, enhancing its overall financial performance and sustainability.