GXO Logistics Inc (GXO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,266,000 | 9,507,000 | 9,219,000 | 7,271,000 | 6,548,000 |
| Total stockholders’ equity | US$ in thousands | 3,003,000 | 2,912,000 | 2,645,000 | 2,351,000 | 2,823,000 |
| Financial leverage ratio | 3.75 | 3.26 | 3.49 | 3.09 | 2.32 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,266,000K ÷ $3,003,000K
= 3.75
The financial leverage ratio of GXO Logistics Inc has exhibited an upward trend over the past five years, increasing from 2.32 in 2020 to 3.75 in 2024. This indicates that the company's reliance on debt to finance its operations and growth has been growing steadily over this period. A higher financial leverage ratio suggests a higher level of financial risk, as the company is becoming more leveraged and may face challenges in meeting its debt obligations in the future. It is important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively in order to ensure long-term financial health and stability.
Peer comparison
Dec 31, 2024