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