GXO Logistics Inc (GXO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 9,507,000 | 9,219,000 | 7,271,000 |
| Total stockholders’ equity | US$ in thousands | 2,912,000 | 2,645,000 | 2,351,000 |
| Financial leverage ratio | 3.26 | 3.49 | 3.09 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,507,000K ÷ $2,912,000K
= 3.26
The financial leverage ratio of GXO Logistics Inc has shown a fluctuating trend over the past four years. It increased from 2.95 in 2020 to 3.09 in 2021, further rising to 3.49 in 2022, and then declining to 3.26 in 2023. This indicates that the company has been using more debt to finance its assets in recent years, with a peak in 2022. A higher financial leverage ratio suggests a higher level of financial risk and dependence on debt financing. It is crucial for GXO Logistics Inc to carefully manage its debt levels to maintain financial stability and liquidity in the long term.
Peer comparison
Dec 31, 2023