XPO Logistics Inc (XPO)
Working capital 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 |
| Total current assets | US$ in thousands | 1,593,000 | 1,630,000 | 2,687,000 | 5,378,000 | 3,342,000 |
| Total current liabilities | US$ in thousands | 1,590,000 | 1,507,000 | 2,548,000 | 5,161,000 | 3,258,000 |
| Working capital turnover | 2,581.33 | 62.75 | 51.81 | 28.42 | 127.15 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,744,000K ÷ ($1,593,000K – $1,590,000K)
= 2,581.33
XPO Inc's working capital turnover has exhibited significant fluctuations over the past five years. In 2023, the company's working capital turnover ratio surged to an impressive 2,581.33, representing a substantial improvement compared to the previous year's ratio of 62.75. This drastic increase indicates that XPO Inc efficiently utilized its working capital to generate sales during the most recent fiscal year.
However, the working capital turnover ratio in 2023 appears to be abnormally high compared to historical data, suggesting potential anomalies or extraordinary circumstances impacting the company's working capital management. In contrast, the ratios in 2021, 2020, and 2019 were 92.13, 74.89, and 198.19, respectively, demonstrating varying levels of effectiveness in utilizing working capital to support sales operations during those years.
It is essential for investors and stakeholders to further investigate the underlying reasons for the remarkable increase in the working capital turnover ratio in 2023 to assess the sustainability of such performance and ensure proper management of working capital resources in the future.
Peer comparison
Dec 31, 2023