GXO Logistics Inc (GXO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 13.27% | 12.47% | 13.13% | 13.68% | 14.13% | 14.40% | 14.20% | 14.04% | 13.58% | 13.09% | 12.68% | 12.24% | 12.19% | 12.08% | 12.26% | 11.63% | 11.35% |
| Operating profit margin | 2.81% | 2.97% | 3.25% | 3.51% | 3.39% | 3.16% | 3.03% | 3.20% | 3.76% | 3.72% | 3.43% | 2.51% | 1.90% | 1.85% | 2.14% | 0.67% | 0.26% |
| Pretax margin | 1.25% | 1.06% | 1.52% | 1.93% | 2.72% | 2.66% | 2.71% | 2.64% | 2.94% | 3.13% | 2.76% | 2.15% | 1.93% | 1.71% | 1.81% | 0.36% | -0.10% |
| Net profit margin | 1.14% | 0.97% | 1.35% | 1.68% | 2.34% | 2.09% | 2.10% | 2.00% | 2.19% | 2.36% | 2.55% | 2.15% | 1.93% | 1.68% | 1.01% | -0.08% | -0.50% |
GXO Logistics Inc's profitability has shown a positive trend over the past few years based on its various profitability ratios.
1. Gross Profit Margin: The gross profit margin has improved steadily from 11.35% in December 2020 to 14.13% in March 2023 before slightly declining to 13.27% in December 2024. This indicates that the company has been able to effectively control its cost of goods sold and increase its profitability on sales.
2. Operating Profit Margin: The operating profit margin has shown a significant growth trajectory, starting at 0.26% in December 2020 and rising to 3.25% in June 2024. This indicates that the company has been able to efficiently manage its operating expenses and generate higher profits from its operations.
3. Pretax Margin: The pretax margin has also shown an upward trend, increasing from -0.10% in December 2020 to 1.25% in December 2024. This indicates that the company has been able to increase its profitability before accounting for taxes, which is a positive sign of overall financial health.
4. Net Profit Margin: The net profit margin has followed a similar trend to the pretax margin, starting at -0.50% in December 2020 and reaching 1.14% in December 2024. This indicates that after accounting for all expenses, including taxes, the company has been able to improve its bottom line profitability over the years.
Overall, the trend in GXO Logistics Inc's profitability ratios reflects a positive picture of its financial performance, showing consistent growth and improvement in managing costs and generating profits.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.92% | 2.76% | 2.97% | 3.71% | 3.48% | 3.35% | 3.14% | 3.25% | 3.67% | 3.71% | 3.34% | 2.89% | 2.08% | 1.93% | 2.14% | 0.62% | 0.24% |
| Return on assets (ROA) | 1.19% | 0.90% | 1.23% | 1.78% | 2.41% | 2.22% | 2.18% | 2.04% | 2.14% | 2.35% | 2.48% | 2.47% | 2.10% | 1.75% | 1.00% | -0.07% | -0.47% |
| Return on total capital | 9.56% | 8.37% | 9.48% | 10.18% | 13.46% | 14.15% | 13.86% | 14.23% | 14.71% | 14.52% | 14.11% | 13.07% | 11.61% | 10.71% | 7.52% | 2.60% | 1.52% |
| Return on equity (ROE) | 4.46% | 3.44% | 4.83% | 5.82% | 7.86% | 7.26% | 7.16% | 6.89% | 7.45% | 8.06% | 8.54% | 7.52% | 6.51% | 5.44% | 2.47% | -0.17% | -1.10% |
Based on the profitability ratios of GXO Logistics Inc, we can observe the following trends:
1. Operating Return on Assets (Operating ROA) shows an increasing trend over the period, starting at 0.24% on December 31, 2020, and reaching 3.48% by December 31, 2023. However, there is a slight decrease to 2.92% on December 31, 2024.
2. Return on Assets (ROA) also exhibits a general upward trend, although with some fluctuations. The ROA improves from -0.47% on December 31, 2020, to 2.41% on December 31, 2023, before decreasing slightly to 1.19% by December 31, 2024.
3. Return on Total Capital demonstrates growth initially, peaking at 14.71% on December 31, 2022, before experiencing a downward trend to 9.56% by December 31, 2024.
4. Return on Equity (ROE) follows a similar pattern to ROA, improving steadily from -1.10% on December 31, 2020, to 7.86% on December 31, 2023. However, there is a decrease to 4.46% by December 31, 2024.
Overall, GXO Logistics Inc has shown improvement in profitability ratios over the period, with some fluctuations in the recent quarters. This suggests efficient management of assets and capital, although there may be areas where the company could focus on optimizing returns to shareholders.