XPO Logistics Inc (XPO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,744,000 | 7,718,000 | 7,202,000 | 6,168,000 | 10,681,000 |
| Receivables | US$ in thousands | 973,000 | 954,000 | 2,105,000 | 2,886,000 | 2,500,000 |
| Receivables turnover | 7.96 | 8.09 | 3.42 | 2.14 | 4.27 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,744,000K ÷ $973,000K
= 7.96
The receivables turnover ratio for XPO Inc has shown fluctuation over the past five years. The ratio was 7.96 in 2023, slightly lower than the previous year's 8.09. This indicates that the company collected its accounts receivables approximately 7.96 times during the year, which suggests an efficient management of receivables collection. Compared to 2021 and 2020, the receivables turnover has improved significantly, indicating that the company has been more effective in converting its credit sales into cash during the latest reporting period. However, it is important to note that the ratio decreased slightly from the peak in 2022.
Overall, a higher receivables turnover ratio is generally favorable as it indicates quicker collection of outstanding receivables. The trend of the receivables turnover ratio for XPO Inc should be monitored to assess the efficiency of the company's credit management and collection policies.
Peer comparison
Dec 31, 2023