XPO Logistics Inc (XPO)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,112,000 | 7,744,000 | 7,718,000 | 7,202,000 | 6,168,000 |
| Receivables | US$ in thousands | 1,054,000 | 973,000 | 954,000 | 2,105,000 | 2,886,000 |
| Receivables turnover | 7.70 | 7.96 | 8.09 | 3.42 | 2.14 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,112,000K ÷ $1,054,000K
= 7.70
The receivables turnover ratio for XPO Logistics Inc has shown a significant improvement over the past few years. Starting at a moderate level of 2.14 in December 31, 2020, it increased to 3.42 in December 31, 2021, and then experienced a substantial surge to 8.09 in December 31, 2022. This indicates that the company is collecting its accounts receivable more frequently, possibly due to improved credit policies or more efficient collection processes.
Although there was a slight decrease in the receivables turnover ratio to 7.96 in December 31, 2023, and further to 7.70 in December 31, 2024, the ratios are still relatively high, reflecting the company's ability to efficiently convert its accounts receivable into cash.
Overall, the trend in XPO Logistics Inc's receivables turnover ratio suggests effective management of receivables and a healthy liquidity position. It indicates that the company is efficient in collecting payments from its customers, which is a positive sign for its financial health and operational performance.
Peer comparison
Dec 31, 2024