XPO Logistics Inc (XPO)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 377.75 | 471.94 | 635.59 | 584.63 | 492.88 | 463.04 | 367.84 | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 7.96 | 7.21 | 7.54 | 7.59 | 8.09 | 4.61 | 4.84 | 5.23 | 6.10 | 6.27 | 3.74 | 3.88 | 4.53 | 5.42 | 7.00 | 6.81 | 6.68 | 6.56 | 6.27 | 6.11 |
| 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 |
| Working capital turnover | 2,581.33 | 83.90 | — | 406.89 | 62.75 | 23.86 | 37.61 | 95.50 | 92.38 | 541.96 | 136.44 | 128.27 | 60.19 | 9.91 | 9.23 | 26.48 | 198.79 | 77.17 | 143.55 | 71.10 |
Inventory turnover for XPO Inc is not provided in the data. The receivables turnover ratio fluctuated throughout the quarters, with the highest turnover in Q4 2022 and the lowest in Q3 2023. This indicates that XPO Inc collected its accounts receivable almost 8 times in Q4 2022 compared to only 3.56 times in Q3 2023.
The payables turnover ratio also varied over the quarters, with a significant negative ratio in Q3 2023, possibly indicating an issue with payables management during that period. However, the ratio improved in subsequent quarters.
The working capital turnover ratio indicates how efficiently XPO Inc is utilizing its working capital to generate revenue. The fluctuation in this ratio across quarters suggests changes in the company's operational efficiency and how effectively it is managing its working capital.
Overall, analyzing these activity ratios can provide insights into XPO Inc's efficiency in managing its inventory, collecting receivables, paying obligations, and utilizing its working capital to drive sales.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 0.97 | 0.77 | 0.57 | 0.62 | 0.74 | 0.79 | 0.99 | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 45.86 | 50.63 | 48.40 | 48.11 | 45.12 | 79.15 | 75.36 | 69.86 | 59.83 | 58.18 | 97.51 | 93.96 | 80.65 | 67.32 | 52.15 | 53.61 | 54.65 | 55.65 | 58.18 | 59.73 |
| Number of days of payables | days | 50.19 | 59.82 | 38.60 | 30.50 | 23.70 | 34.52 | 37.89 | 41.04 | 15.74 | 38.22 | 51.51 | 57.96 | 39.63 | 47.46 | 38.94 | 47.64 | 51.10 | 50.00 | 50.99 | 50.54 |
The activity ratios of XPO Inc, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insight into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH): Unfortunately, there is missing data for the Days of Inventory on Hand for all quarters in 2023 and 2022. Without this data, it is challenging to assess how quickly XPO Inc is managing its inventory turnover.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding measure how long it takes for XPO Inc to collect payment from its customers. In Q4 2023, the DSO improved significantly to 45.86 days compared to the previous quarter. However, in Q3 2023, there was a notable increase in DSO to 102.39 days, indicating slower collections. Overall, there have been fluctuations in DSO throughout the quarters, with Q2 2023 and Q1 2023 showing moderate improvements.
3. Number of Days of Payables: The Number of Days of Payables reflects how long it takes XPO Inc to pay its suppliers. In Q4 2023, the company took longer to pay its payables, with 110.33 days, compared to the significant decrease in Q3 2023 where data is missing. The previous quarters in 2023 and 2022 also show fluctuations in the Number of Days of Payables.
Overall, while XPO Inc has shown improvement in its Days of Sales Outstanding in Q4 2023, there are visible fluctuations in this ratio along with the Number of Days of Payables. The missing data for Days of Inventory on Hand makes it difficult to provide a comprehensive analysis of the company's inventory management efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.03 | 1.19 | 1.20 | 1.22 | 1.23 | 1.09 | 1.23 | 1.26 | 1.47 | 1.46 | 0.76 | 0.79 | 0.81 | 0.90 | 1.00 | 1.13 | 1.18 | 1.21 | 1.19 | 1.21 |
The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. Looking at the data for XPO Inc over the past eight quarters, we can observe fluctuations in the fixed asset turnover ratio from as low as 1.82 in Q3 2023 to as high as 6.41 in Q1 2022. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets, which can be a positive sign of operational efficiency.
On the other hand, the total asset turnover ratio reflects how well a company utilizes all its assets, both fixed and current, to generate sales. In the case of XPO Inc, the total asset turnover ratio has also varied over the quarters, ranging from 0.59 in Q3 2023 to 1.23 in both Q4 2022 and Q1 2022. A higher total asset turnover ratio generally implies that the company is efficiently using all its assets to drive sales.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for XPO Inc shows some fluctuation but also indicates that the company has been effectively utilizing its assets to generate revenue. However, stakeholders may want to monitor these ratios closely to ensure sustained operational efficiency and profitability.