GXO Logistics Inc (GXO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 134,000 | 229,000 | 197,000 | 153,000 | -22,000 |
| Total assets | US$ in thousands | 11,266,000 | 9,507,000 | 9,219,000 | 7,271,000 | 6,548,000 |
| ROA | 1.19% | 2.41% | 2.14% | 2.10% | -0.34% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $134,000K ÷ $11,266,000K
= 1.19%
The return on assets (ROA) for GXO Logistics Inc has shown variability over the past five years.
In December 31, 2020, the ROA was -0.34%, suggesting that the company had a negative return in that year. This could indicate that the company's assets were not efficiently utilized to generate profit.
However, in the subsequent years, there was a notable improvement in the ROA. The ROA increased to 2.10% in December 31, 2021, and continued to rise to 2.14% in December 31, 2022, and further to 2.41% in December 31, 2023. These increasing ROA figures indicate that GXO Logistics Inc managed to generate more profit relative to its assets over these years.
In December 31, 2024, the ROA decreased to 1.19%, showing a slight decline in the company's ability to generate profit from its assets compared to the previous year.
Overall, the trend in ROA for GXO Logistics Inc shows improvement in the company's ability to generate returns from its assets, with some fluctuations in between. It suggests that the company may have been making more efficient use of its assets to create value for shareholders, although there may be some areas where further operational efficiency improvements could be made to sustain or enhance this performance.
Peer comparison
Dec 31, 2024