XPO Logistics Inc (XPO)
Fixed asset turnover
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,744,000 | 7,635,000 | 7,601,000 | 7,731,000 | 7,718,000 | 9,283,000 | 10,607,000 | 11,746,000 | 12,841,000 | 12,465,000 | 11,870,000 | 12,186,000 | 13,061,000 | 14,227,000 | 15,706,000 | 16,442,000 | 16,698,000 | 16,901,000 | 17,082,000 | 17,207,000 |
| Property, plant and equipment | US$ in thousands | 3,075,000 | 2,072,000 | 2,037,000 | 1,978,000 | 1,832,000 | 1,828,000 | 1,799,000 | 1,796,000 | 1,675,000 | 1,821,000 | 2,627,000 | 2,651,000 | 1,891,000 | 2,573,000 | 2,597,000 | 2,632,000 | 2,704,000 | 2,589,000 | 2,551,000 | 2,559,000 |
| Fixed asset turnover | 2.52 | 3.68 | 3.73 | 3.91 | 4.21 | 5.08 | 5.90 | 6.54 | 7.67 | 6.85 | 4.52 | 4.60 | 6.91 | 5.53 | 6.05 | 6.25 | 6.18 | 6.53 | 6.70 | 6.72 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,744,000K ÷ $3,075,000K
= 2.52
XPO Inc's fixed asset turnover has been fluctuating over the past eight quarters. The ratio measures the efficiency of the company in generating sales revenue for each dollar of fixed assets.
In Q1 2022, the fixed asset turnover was 6.41, indicating that XPO Inc generated $6.41 in sales for every dollar invested in fixed assets. However, the ratio has been declining since then. By Q4 2022, the ratio dropped to 4.21, and this trend continued into 2023.
The ratio hit its lowest point in Q3 2023 at 1.82, which suggests that the company was less efficient in utilizing its fixed assets to generate sales revenue during that period. However, there was a slight improvement in Q4 2023 with a fixed asset turnover of 2.52.
Overall, the decreasing trend in fixed asset turnover raises concerns about whether XPO Inc is effectively utilizing its fixed assets to generate revenue. It is important for the company to carefully assess and improve its fixed asset management to enhance operational efficiency and profitability in the long term.
Peer comparison
Dec 31, 2023