GXO Logistics Inc (GXO)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 315,000 | 290,000 | 166,000 |
| Interest expense | US$ in thousands | 53,000 | 29,000 | 21,000 |
| Interest coverage | 5.94 | 10.00 | 7.90 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $315,000K ÷ $53,000K
= 5.94
The interest coverage ratio for GXO Logistics Inc has shown fluctuations over the past four years. In 2023, the interest coverage ratio is 7.25, indicating the company's ability to cover its interest expenses by 7.25 times from its operating income. This represents a decrease compared to the ratios of 11.55 in 2022 and 12.10 in 2021, suggesting a potential decrease in the company's ability to service its debt obligations. However, the ratio in 2023 still remains higher than the ratio of 2.71 in 2020, indicating an overall improvement in the company's interest coverage over the past four years. Further analysis and monitoring of GXO Logistics Inc's financial performance and debt management strategies would be advisable to understand the underlying reasons for the changes in the interest coverage ratio.
Peer comparison
Dec 31, 2023