GXO Logistics Inc (GXO)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,266,000 | 11,900,000 | 11,360,000 | 9,380,000 | 9,507,000 | 9,091,000 | 9,126,000 | 9,090,000 | 9,219,000 | 8,806,000 | 8,706,000 | 7,126,000 | 7,271,000 | 7,133,000 | 7,068,000 | 7,120,000 | 6,548,000 |
| 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 |
| Financial leverage ratio | 3.75 | 3.83 | 3.92 | 3.27 | 3.26 | 3.27 | 3.29 | 3.39 | 3.49 | 3.43 | 3.44 | 3.04 | 3.09 | 3.11 | 2.46 | 2.44 | 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 been steadily increasing over the period from December 31, 2020, to December 31, 2024. The ratio started at 2.32 at the end of 2020 and peaked at 3.92 by June 30, 2024, signifying an increase in the company's reliance on debt financing to fund its operations and investments.
The rising trend in the financial leverage ratio suggests that GXO Logistics Inc is becoming more leveraged over time, potentially exposing the company to higher financial risks associated with increased debt levels. Investors and creditors may view this trend with caution as higher leverage can amplify the impact of economic downturns or interest rate changes on the company's financial stability.
It is crucial for GXO Logistics Inc to carefully manage its debt levels and ensure that the increased leverage is sustainable and supports the company's growth objectives without jeopardizing its financial health in the long term. Monitoring the company's debt repayment capacity, interest coverage ratios, and overall financial performance will be essential in assessing the impact of the rising financial leverage ratio on GXO Logistics Inc's future financial stability and growth prospects.
Peer comparison
Dec 31, 2024