XPO Logistics Inc (XPO)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,744,000 | 7,635,000 | 7,601,000 | 7,731,000 | 7,718,000 | 9,283,000 | 10,607,000 | 11,746,000 | 12,841,000 | 12,465,000 | 11,870,000 | 12,186,000 | 13,061,000 | 14,227,000 | 15,706,000 | 16,442,000 | 16,698,000 | 16,901,000 | 17,082,000 | 17,207,000 |
| Receivables | US$ in thousands | 973,000 | 1,059,000 | 1,008,000 | 1,019,000 | 954,000 | 2,013,000 | 2,190,000 | 2,248,000 | 2,105,000 | 1,987,000 | 3,171,000 | 3,137,000 | 2,886,000 | 2,624,000 | 2,244,000 | 2,415,000 | 2,500,000 | 2,577,000 | 2,723,000 | 2,816,000 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,744,000K ÷ $973,000K
= 7.96
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a period. A higher ratio indicates faster collection and implies a more efficient credit and collection process.
Analyzing the receivables turnover of XPO Inc over the last eight quarters, we observe fluctuations in the ratio. In Q4 2023, the receivables turnover ratio was 7.96, indicating that XPO Inc collected its outstanding receivables approximately 7.96 times during that quarter. This was substantially higher compared to the previous quarter, Q3 2023, where the ratio was 3.56. The significant increase in Q4 2023 could suggest improved collection efficiency or a change in the company's credit policies.
Looking at the trend over the past year, we see that the receivables turnover ratio has generally been fluctuating between 4.43 and 8.09. This variability could be due to seasonal factors, changes in customer payment behaviors, or adjustments in credit terms offered by XPO Inc. However, it is worth noting that the ratio has mostly been above 4, which indicates that the company is collecting its receivables at a reasonably steady pace.
Overall, while the receivables turnover ratio of XPO Inc has shown some variability, the recent increase in Q4 2023 suggests a potential improvement in the efficiency of the company's accounts receivable management. Continued monitoring of this metric will be essential to assess the effectiveness of XPO Inc's credit and collection policies in the future.
Peer comparison
Dec 31, 2023