GXO Logistics Inc (GXO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 315,000 | 304,000 | 297,000 | 279,000 | 290,000 | 295,000 | 253,000 | 190,000 | |||
| Long-term debt | US$ in thousands | — | — | 1,625,000 | 1,697,000 | 1,739,000 | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,912,000 | 2,784,000 | 2,778,000 | 2,685,000 | 2,645,000 | 2,569,000 | 2,530,000 | 2,341,000 | 2,351,000 | 2,296,000 | 2,874,000 |
| Return on total capital | 10.82% | 10.92% | 6.75% | 6.37% | 6.61% | 11.48% | 10.00% | 8.12% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $315,000K ÷ ($—K + $2,912,000K)
= 10.82%
GXO Logistics Inc's return on total capital has been relatively stable over the past five quarters, ranging from 7.53% in Q4 2022 to 8.58% in Q3 2023. This indicates the company's ability to generate a consistent return on the total capital employed in its operations. The average return on total capital over this period is approximately 8.09%. The trend suggests that GXO Logistics Inc has been effectively utilizing its capital to generate profits and create value for its shareholders. Maintaining a stable and relatively high return on total capital is a positive indicator of the company's operational efficiency and financial health. It implies that the company is effectively generating returns from its investments and managing its capital resources efficiently.
Peer comparison
Dec 31, 2023