XPO Logistics Inc (XPO)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,869,000 | 2,886,000 | 4,388,000 | 6,044,000 | 8,023,000 | 10,805,000 | 11,108,000 | 11,829,000 | 12,039,000 | 9,196,000 | 9,163,000 | 8,369,000 | 7,865,000 | 7,883,000 | 7,874,000 | 8,098,000 | 8,265,000 | 8,263,000 | 8,417,700 | 8,579,900 |
| Payables | US$ in thousands | 532,000 | 473,000 | 464,000 | 505,000 | 521,000 | 1,022,000 | 1,153,000 | 1,330,000 | 519,000 | 963,000 | 1,293,000 | 1,329,000 | 854,000 | 1,025,000 | 840,000 | 1,057,000 | 1,157,000 | 1,132,000 | 1,176,000 | 1,188,000 |
| Payables turnover | 7.27 | 6.10 | 9.46 | 11.97 | 15.40 | 10.57 | 9.63 | 8.89 | 23.20 | 9.55 | 7.09 | 6.30 | 9.21 | 7.69 | 9.37 | 7.66 | 7.14 | 7.30 | 7.16 | 7.22 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,869,000K ÷ $532,000K
= 7.27
The payables turnover ratio for XPO Inc has been fluctuating over the past eight quarters. In Q4 2023, the payables turnover was 3.31, indicating that the company took approximately 3.31 times to pay off its accounts payable during that quarter. This was an improvement compared to the negative figure in Q3 2023, suggesting that the company might have faced challenges in managing its payables during that period.
The payables turnover ratio has shown variability throughout the quarters, with the highest turnover seen in Q4 2022 at 9.49 and the lowest in Q3 2023 at -0.74. A higher payables turnover ratio is generally considered more favorable as it indicates that the company is efficiently managing its accounts payable by paying off its suppliers in a timely manner.
Overall, the trend in the payables turnover ratio for XPO Inc shows some inconsistency, and it would be important to further investigate the reasons behind these fluctuations to assess the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2023