XPO Logistics Inc (XPO)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,112,000 | 8,090,000 | 8,017,000 | 7,855,000 | 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 |
| Total current assets | US$ in thousands | 1,505,000 | 1,654,000 | 1,548,000 | 1,528,000 | 1,593,000 | 1,613,000 | 1,522,000 | 1,565,000 | 1,630,000 | 2,831,000 | 2,916,000 | 3,555,000 | 2,687,000 | 2,550,000 | 4,464,000 | 4,271,000 | 5,378,000 | 5,084,000 | 5,030,000 | 4,006,000 |
| Total current liabilities | US$ in thousands | 1,420,000 | 1,563,000 | 1,542,000 | 1,622,000 | 1,590,000 | 1,522,000 | 1,533,000 | 1,546,000 | 1,507,000 | 2,442,000 | 2,634,000 | 3,432,000 | 2,548,000 | 2,527,000 | 4,377,000 | 4,176,000 | 5,161,000 | 3,648,000 | 3,329,000 | 3,385,000 |
| Working capital turnover | 95.44 | 88.90 | 1,336.17 | — | 2,581.33 | 83.90 | — | 406.89 | 62.75 | 23.86 | 37.61 | 95.50 | 92.38 | 541.96 | 136.44 | 128.27 | 60.19 | 9.91 | 9.23 | 26.48 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,112,000K ÷ ($1,505,000K – $1,420,000K)
= 95.44
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Based on the provided data for XPO Logistics Inc, we observe fluctuations in the working capital turnover ratio over the quarters. The working capital turnover ratio stood at 26.48 on March 31, 2020, suggesting that the company generated $26.48 in sales for every $1 of working capital.
The ratio decreased to 9.23 and 9.91 by June 30, 2020, and September 30, 2020, respectively, indicating a decrease in sales generated for each dollar of working capital. However, there was a significant improvement in efficiency by December 31, 2020, with a ratio of 60.19.
The efficiency further increased substantially to 128.27 on March 31, 2021, and continued to rise significantly in the following quarters, reaching the highest point at 2,581.33 on December 31, 2023. This exceptional increase in efficiency suggests that XPO Logistics was able to generate a significantly higher amount of sales with the same level of working capital.
The ratio dropped to 1,336.17 by June 30, 2024, still indicating strong efficiency in utilizing working capital. Overall, the trend in the working capital turnover ratio for XPO Logistics Inc shows variability, with periods of both improved and slightly decreased efficiency in working capital utilization to generate sales revenue.
Peer comparison
Dec 31, 2024