GXO Logistics Inc (GXO)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 287,000 260,000 275,000 292,000 392,000 394,000 385,000 382,000 389,000 373,000 357,000 306,000 273,000 246,000 216,000 76,000 43,000
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 3,003,000 3,106,000 2,901,000 2,869,000 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 2,919,000 2,823,000
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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $287,000K ÷ ($—K + $3,003,000K)
= 9.56%

Over the course of the provided periods, GXO Logistics Inc's return on total capital has shown fluctuations. Starting at 1.52% as of December 31, 2020, the return on total capital gradually increased to a peak of 14.71% as of December 31, 2022. However, there was a subsequent decline in the return on total capital to 9.48% as of June 30, 2024, before slightly recovering to 9.56% as of December 31, 2024.

The highest returns on total capital were realized in the latter half of 2022, peaking at 14.71%. This indicates the company efficiently utilized its total capital during this period to generate profits. The fluctuations observed in the return on total capital suggest varying levels of profitability and efficiency in capital utilization by GXO Logistics Inc over the analyzed periods.

Overall, GXO Logistics Inc's return on total capital has shown a mix of peaks and declines, reflecting changes in the company's profitability and effectiveness in utilizing its total capital resources.