GXO Logistics Inc (GXO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 218,000 | 318,000 | 386,000 | 277,000 | 94,000 |
| Total assets | US$ in thousands | 11,266,000 | 9,507,000 | 9,219,000 | 7,271,000 | 6,548,000 |
| Operating ROA | 1.94% | 3.34% | 4.19% | 3.81% | 1.44% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $218,000K ÷ $11,266,000K
= 1.94%
Operating Return on Assets (ROA) is a key financial ratio that measures a company's operating efficiency in generating profits from its assets. Looking at the data for GXO Logistics Inc from 2020 to 2024, we observe the following trend:
- In December 2020, GXO's Operating ROA was 1.44%, indicating that the company generated $1.44 in operating income for every $100 of assets.
- By December 2021, GXO's Operating ROA improved significantly to 3.81%, suggesting an enhanced ability to utilize its assets to generate operating profits.
- The trend continued to show improvement in December 2022, with Operating ROA reaching 4.19%, demonstrating a higher efficiency in converting assets into operating income.
- However, in December 2023, GXO experienced a slight decline in Operating ROA to 3.34%, possibly reflecting changes in the company's operations or asset utilization.
- Finally, by December 2024, GXO's Operating ROA decreased further to 1.94%, indicating a relative decrease in operating efficiency compared to the previous year.
Overall, the fluctuations in GXO Logistics Inc's Operating ROA over the years suggest varying levels of efficiency in utilizing its assets to generate operating income. It is essential for the company to closely monitor and manage its asset utilization to maintain or improve its Operating ROA in the future.
Peer comparison
Dec 31, 2024