GXO Logistics Inc (GXO)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	US$ in thousands	229,000	197,000	153,000
Total stockholders’ equity	US$ in thousands	2,912,000	2,645,000	2,351,000
ROE		7.86%	7.45%	6.51%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $229,000K ÷ $2,912,000K
= 7.86%

The return on equity (ROE) for GXO Logistics Inc has shown a positive trend over the past four years, increasing from -0.60% in 2020 to 7.86% in 2023. This improvement indicates that the company has become more efficient in generating profits from the shareholders' equity invested in the business.

A rising ROE demonstrates that the company is delivering higher returns to its shareholders relative to the equity they have contributed. The steady increase in ROE suggests that GXO Logistics Inc has been able to effectively utilize its equity capital to generate profits.

The positive ROE figures indicate that the company is effectively managing its assets and liabilities to boost profitability. Investors typically view a rising ROE positively as it reflects the company's ability to generate healthy returns on shareholder investments.

Overall, the increasing trend in GXO Logistics Inc's ROE signifies improved performance and efficiency in utilizing shareholder equity, which could attract more investors and potentially lead to higher stock prices.