GXO Logistics Inc (GXO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.85% | 14.13% | 13.58% | 12.19% | 11.35% |
| Operating profit margin | 1.86% | 3.25% | 4.29% | 3.49% | 1.52% |
| Pretax margin | 1.25% | 2.72% | 2.94% | 1.93% | -0.10% |
| Net profit margin | 1.14% | 2.34% | 2.19% | 1.93% | -0.36% |
GXO Logistics Inc has shown an improving trend in profitability ratios over the past five years.
1. Gross Profit Margin: GXO's gross profit margin has steadily increased from 11.35% in 2020 to 15.85% in 2024. This indicates that the company has become more efficient in generating profit from its revenue after deducting the cost of goods sold.
2. Operating Profit Margin: Despite a slight dip in 2023, GXO's operating profit margin has generally shown growth, rising from 1.52% in 2020 to 1.86% in 2024. This suggests that the company has been able to control its operating expenses better over the years.
3. Pretax Margin: GXO's pretax margin has shown a positive trajectory, increasing from -0.10% in 2020 to 1.25% in 2024. This indicates that the company has been able to generate more profit before accounting for taxes as a percentage of its revenue.
4. Net Profit Margin: The net profit margin of GXO has fluctuated over the years but has shown an overall improvement, increasing from -0.36% in 2020 to 1.14% in 2024. This indicates that the company has been able to improve its bottom line profitability by controlling other expenses such as interest and taxes.
Overall, the profitability ratios of GXO Logistics Inc demonstrate a positive trend, reflecting improved efficiency in managing costs and generating profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.94% | 3.34% | 4.19% | 3.81% | 1.44% |
| Return on assets (ROA) | 1.19% | 2.41% | 2.14% | 2.10% | -0.34% |
| Return on total capital | 13.35% | 10.95% | 13.91% | 10.80% | 3.26% |
| Return on equity (ROE) | 4.46% | 7.86% | 7.45% | 6.51% | -0.78% |
GXO Logistics Inc's profitability ratios have shown a fluctuating trend over the years.
- Operating return on assets (Operating ROA) increased from 1.44% in 2020 to 4.19% in 2022 before slightly decreasing to 3.34% by the end of 2023.
- Return on assets (ROA) improved from -0.34% in 2020 to 2.41% in 2023, with a slight dip to 1.19% by the end of 2024.
- Return on total capital rose from 3.26% in 2020 to 13.35% in 2024, reflecting enhanced efficiency in generating profits from both debt and equity sources.
- Return on equity (ROE) also demonstrated an upward trajectory, climbing from -0.78% in 2020 to 7.86% in 2023, before declining to 4.46% in 2024.
Overall, GXO Logistics Inc has shown significant improvements in its profitability metrics, indicating the company's ability to generate returns for both its shareholders and investors, with some fluctuations observed in recent years.