XPO Logistics Inc (XPO)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,112,000 | 7,744,000 | 7,718,000 | 7,202,000 | 6,168,000 |
| Property, plant and equipment | US$ in thousands | 3,402,000 | 3,075,000 | 1,832,000 | 1,675,000 | 1,891,000 |
| Fixed asset turnover | 2.38 | 2.52 | 4.21 | 4.30 | 3.26 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,112,000K ÷ $3,402,000K
= 2.38
The fixed asset turnover ratio of XPO Logistics Inc has shown fluctuations over the past five years. In 2020, the ratio was 3.26, indicating that the company generated $3.26 in revenue for every dollar invested in fixed assets. This ratio improved to 4.30 in 2021, suggesting increased efficiency in utilizing fixed assets to generate revenue.
However, in 2022 and 2023, the fixed asset turnover ratio declined to 4.21 and 2.52 respectively. This could signify potential challenges in efficiently utilizing the company's fixed assets to generate revenue during these years.
In 2024, the ratio further dropped to 2.38, potentially indicating a lower level of efficiency in utilizing fixed assets to generate revenue compared to previous years. Overall, the trend in the fixed asset turnover ratio for XPO Logistics Inc reflects variability in the company's ability to generate revenue from its investment in fixed assets over the past five years.
Peer comparison
Dec 31, 2024