XPO Logistics Inc (XPO)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,099,000 | 3,885,000 | 6,145,000 | 10,780,000 | 10,867,000 |
| Payables | US$ in thousands | 477,000 | 532,000 | 521,000 | 519,000 | 854,000 |
| Payables turnover | 8.59 | 7.30 | 11.79 | 20.77 | 12.72 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,099,000K ÷ $477,000K
= 8.59
The payables turnover ratio for XPO Logistics Inc has shown fluctuations over the years. In 2020, the ratio was 12.72, indicating that the company paid off its creditors approximately 12.72 times during the year. This ratio increased significantly to 20.77 by the end of 2021, suggesting a more efficient management of payables.
However, there was a notable decrease in the payables turnover ratio to 11.79 by the end of 2022, which may indicate a longer payment period or changes in the company's payables management practices. The trend continued with a further decrease to 7.30 by the end of 2023, signaling a slowdown in the rate at which the company was paying off its suppliers.
The ratio improved slightly to 8.59 by the end of 2024, but it still remained comparatively lower than the ratios seen in earlier years. A low payables turnover ratio may imply that the company is taking longer to pay its suppliers, which could impact its relationships with creditors and potentially lead to liquidity challenges.
Overall, the fluctuating payables turnover ratios highlight the importance of monitoring the company's payment practices and managing its accounts payable efficiently to maintain positive relationships with suppliers and ensure liquidity.
Peer comparison
Dec 31, 2024