GXO Logistics Inc (GXO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.75 | 3.26 | 3.49 | 3.09 | 2.32 |
GXO Logistics Inc has consistently maintained a strong solvency position over the past five years, as indicated by its debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 for each year. This suggests that the company carries minimal debt relative to its total assets, capital, and equity, reflecting a conservative financial structure.
However, it is important to note that the financial leverage ratio has been gradually increasing from 2.32 in 2020 to 3.75 in 2024. This indicates that the company's reliance on debt as a source of financing has been on the rise over the years. While the increase in leverage may signify growth and expansion opportunities, it also implies higher financial risk and a potentially increased dependence on debt to support operations and investments.
Overall, while GXO Logistics Inc demonstrates a strong solvency position with virtually no debt relative to its assets, capital, and equity, investors and stakeholders should monitor the trend of the financial leverage ratio to ensure the company's ability to manage its debt levels effectively and sustain its financial health in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3,893.20 | 6.02 | 12.69 | 12.10 | 3.83 |
Based on the data provided, GXO Logistics Inc's interest coverage ratio has shown fluctuations over the years. In December 2020, the interest coverage was 3.83, indicating that the company's operating income was able to cover its interest expenses 3.83 times over.
However, the interest coverage improved significantly by December 2021, reaching 12.10, and continued to strengthen in the following years, with values of 12.69 in 2022 and 6.02 in 2023.
Interestingly, there was a substantial spike in the interest coverage ratio to 3,893.20 by December 2024, which could be due to various reasons such as extraordinary income, changes in financing structure, or one-time events impacting the calculations.
Overall, GXO Logistics Inc's interest coverage has generally been healthy, especially in the later years, suggesting that the company has been generating sufficient operating income to comfortably meet its interest payment obligations. However, further analysis would be required to understand the underlying reasons for the significant increase in 2024.