XPO Logistics Inc (XPO)
Total asset 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 |
| Total assets | US$ in thousands | 7,712,000 | 7,492,000 | 6,269,000 | 8,717,000 | 16,177,000 |
| Total asset turnover | 1.05 | 1.03 | 1.23 | 0.83 | 0.38 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,112,000K ÷ $7,712,000K
= 1.05
Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its total assets. In the case of XPO Logistics Inc, the total asset turnover has shown a significant improvement over the last five years.
In 2020, the total asset turnover was 0.38, indicating that for every dollar of assets, the company generated $0.38 in revenue. However, by 2024, the total asset turnover had increased to 1.05, demonstrating that the company was able to generate $1.05 in revenue for every dollar of assets.
This improvement in total asset turnover suggests that XPO Logistics Inc has become more efficient in utilizing its assets to generate revenue over the years. This could be attributed to better management of inventory, efficient use of assets, and increased sales volume. Overall, the increasing trend in total asset turnover reflects positively on the company's operational efficiency and effectiveness in utilizing its assets to drive revenue growth.
Peer comparison
Dec 31, 2024