GXO Logistics Inc (GXO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,003,000 | 2,912,000 | 2,645,000 | 2,351,000 | 2,823,000 |
| ROE | 4.46% | 7.86% | 7.45% | 6.51% | -0.78% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $134,000K ÷ $3,003,000K
= 4.46%
Based on the provided data, GXO Logistics Inc's return on equity (ROE) has shown varying trends over the past few years:
1. In 2020, the company had a negative ROE of -0.78%, indicating that the company's net income was insufficient to generate positive returns for its shareholders.
2. However, there was a significant improvement in 2021, with the ROE increasing to 6.51%. This suggests that the company was able to generate a modest return for its shareholders relative to the equity invested.
3. The positive trend continued in 2022 and 2023, with ROE figures of 7.45% and 7.86% respectively. This indicates that GXO Logistics Inc improved its profitability and operational efficiency during these years.
4. However, in 2024, there was a slight decline in ROE to 4.46%. While still positive, this decrease may signal a potential slowdown in the company's ability to generate returns for its shareholders.
Overall, GXO Logistics Inc's ROE has shown improvement from negative territory to positive figures over the years, indicating a positive trend in the company's ability to utilize its equity effectively to generate returns for its shareholders. However, the slight decline in 2024 warrants further monitoring to assess the company's future profitability and efficiency.
Peer comparison
Dec 31, 2024