XPO Logistics Inc (XPO)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of XPO Logistics Inc as follows:

1. Inventory Turnover:
- XPO Logistics Inc's inventory turnover has shown fluctuating trends over the years, ranging from a low of 367.84 in September 2021 to a high of 635.59 in September 2022. The ratio measures how efficiently the company manages its inventory, with a higher turnover indicating better inventory management. However, there is inconsistency in the data, with some periods showing no data reported, suggesting that further analysis may be needed.

2. Receivables Turnover:
- The receivables turnover ratio has also varied for XPO Logistics Inc, with values ranging from a low of 3.74 in June 2021 to a high of 8.09 in December 2022. This ratio reflects how quickly the company collects payments from its customers. A higher turnover indicates more efficient collection practices. It is important to note that the company has generally maintained a reasonable turnover ratio over the years.

3. Payables Turnover:
- XPO Logistics Inc's payables turnover ratio has shown some fluctuations, with values ranging from 6.10 in December 2021 to 15.40 in December 2022. This ratio measures how quickly the company pays its suppliers. A higher ratio suggests that the company is paying its suppliers more quickly. The data indicates that the company has varied in its payment practices over the years, which may have implications for supplier relationships and cash flow management.

4. Working Capital Turnover:
- The working capital turnover ratio reflects how efficiently the company generates revenue from its working capital. XPO Logistics Inc's working capital turnover has shown significant variability, with values ranging from a low of 9.23 in June 2020 to a high of 2,581.33 in December 2023. A higher turnover indicates that the company is effectively utilizing its working capital to generate sales. The data shows that the company's working capital efficiency has fluctuated significantly, highlighting the need for continuous monitoring and management of working capital.

In conclusion, the analysis of XPO Logistics Inc's activity ratios reveals fluctuations in inventory turnover, receivables turnover, payables turnover, and working capital turnover over the years. These ratios provide insights into the company's operational efficiency, liquidity management, and working capital utilization. Further analysis and comparison with industry benchmarks may be necessary to assess XPO Logistics Inc's performance in these areas accurately.

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Average number of days

The activity ratios of XPO Logistics Inc provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- XPO Logistics Inc has shown a decreasing trend in its DOH from 0.99 days in September 2021 to 0.57 days in September 2022, which indicates the company is managing its inventory efficiently.
- However, the DOH slightly increased to 0.77 days in December 2022 and further to 0.97 days in March 2023, suggesting a potential buildup in inventory levels.
- The DOH decreased again to 0.62 days in June 2022, indicating some improvement in managing inventory levels.

2. Days of Sales Outstanding (DSO):
- The DSO for XPO Logistics Inc fluctuated over the periods analyzed but generally decreased from 93.96 days in March 2021 to 45.86 days in December 2023. This implies the company is collecting its receivables more efficiently.
- However, there was a slight increase in DSO from 45.12 days in December 2022 to 50.05 days in March 2024, indicating a potential delay in receiving payments.

3. Number of Days of Payables:
- XPO Logistics Inc has managed to reduce its days of payables from 57.96 days in March 2021 to 23.70 days in December 2022, which suggests the company is paying its payables more promptly.
- There was an increase in days of payables to 52.79 days in March 2024, indicating a potential delay in settling its payables.

Overall, based on the activity ratios, XPO Logistics Inc shows efficiency in managing its inventory levels and improving its collections but may need to pay closer attention to managing payables to maintain a balanced working capital cycle.

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Long-term

The Fixed Asset Turnover ratio for XPO Logistics Inc has shown a fluctuating trend over the past years, decreasing from 6.25 in March 2020 to 2.38 in December 2024. This indicates that the company is generating less revenue relative to its fixed assets over time.

On the other hand, the Total Asset Turnover ratio has also displayed variations, with a slight decrease from 1.13 in March 2020 to 1.05 in December 2024. This implies that the company's efficiency in generating revenue from its total assets has remained relatively stable, albeit with some fluctuations.

Overall, the decreasing trend in Fixed Asset Turnover suggests that XPO Logistics may need to reassess its asset management strategies to improve the utilization of its fixed assets. Meanwhile, the stability in Total Asset Turnover indicates a consistent ability to generate revenue from its total asset base, despite some fluctuations in performance.