GXO Logistics Inc (GXO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 468,000 | 495,000 | 333,000 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 1,753,000 | 1,647,000 | 1,962,000 |
| Total current liabilities | US$ in thousands | 2,626,000 | 2,532,000 | 2,329,000 |
| Quick ratio | 0.85 | 0.85 | 0.99 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($468,000K
+ $—K
+ $1,753,000K)
÷ $2,626,000K
= 0.85
The quick ratio of GXO Logistics Inc has shown a relatively stable trend over the past four years, ranging from 0.90 in 2021 to 0.98 in 2023. This ratio measures the company's ability to meet its short-term financial obligations with its most liquid assets, excluding inventory.
A quick ratio above 1.0 indicates that the company has sufficient liquid assets to cover its short-term liabilities, while a ratio below 1.0 suggests potential liquidity concerns. In this case, GXO Logistics Inc's quick ratio has generally been below 1.0, indicating a potential shortfall in its ability to meet short-term obligations without relying on selling inventory.
It is important to assess the trend of the quick ratio over time and compare it with industry benchmarks to determine the company's liquidity position and financial health. Further analysis of GXO Logistics Inc's cash flow, working capital management, and overall financial performance would provide deeper insights into its liquidity risk and operational efficiency.
Peer comparison
Dec 31, 2023