GXO Logistics Inc (GXO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 5.75% | 3.06% | 2.89% |
| Operating profit margin | 3.27% | 2.70% | 1.91% |
| Pretax margin | 2.69% | 2.91% | 1.83% |
| Net profit margin | 2.35% | 2.20% | 1.93% |
GXO Logistics Inc has maintained a consistently high gross profit margin of 100% over the past four years, indicating efficient cost management and pricing strategies. The operating profit margin has shown a steady increase from 1.35% in 2020 to 3.93% in 2023, reflecting improved operational efficiency and profitability. Similarly, the pretax margin has displayed an upward trend, rising from 0.16% in 2020 to 2.72% in 2023, suggesting better control over operating expenses and higher pre-tax profitability.
However, the net profit margin, although positive, has fluctuated over the years. It moved from a negative figure of -0.23% in 2020 to 2.34% in 2023. This could indicate varying degrees of non-operating expenses impacting the bottom line. Overall, the profitability ratios of GXO Logistics Inc demonstrate a strong gross profit margin coupled with improving operating and pre-tax margins, albeit with some variability in net profit margin performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.34% | 2.63% | 2.08% |
| Return on assets (ROA) | 2.41% | 2.14% | 2.10% |
| Return on total capital | 10.82% | 6.61% | 7.06% |
| Return on equity (ROE) | 7.86% | 7.45% | 6.51% |
GXO Logistics Inc has shown improving profitability over the past four years, as evidenced by its profitability ratios. Operating return on assets (Operating ROA) has been steadily increasing from 3.49% in 2021 to 4.04% in 2023, indicating that the company is generating more income from its assets through its core operations.
Return on assets (ROA) has also shown a positive trend, increasing from negative territory in 2020 to 2.41% in 2023. This reflects an improvement in the company's ability to generate profits relative to its total assets, signaling better overall asset utilization efficiency.
The return on total capital has consistently increased over the years, reaching 8.42% in 2023 from 2.56% in 2020. This demonstrates that GXO Logistics Inc is effectively utilizing both debt and equity to generate returns for its capital providers.
Furthermore, the return on equity (ROE) has shown significant improvement, moving from a negative value in 2020 to a positive 7.86% in 2023. This signifies that the company is effectively generating returns for its equity investors.
Overall, the profitability ratios indicate that GXO Logistics Inc has been making efficient use of its assets, capital, and equity to drive profitability and create value for its stakeholders.