XPO Logistics Inc (XPO)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 3,342,000 | 3,426,000 | 3,790,000 | 3,683,000 |
| Total current liabilities | US$ in thousands | 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 | 3,258,000 | 3,207,000 | 3,671,000 | 3,441,000 |
| Working capital turnover | 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 | 198.79 | 77.17 | 143.55 | 71.10 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,744,000K ÷ ($1,593,000K – $1,590,000K)
= 2,581.33
The working capital turnover for XPO Inc has shown significant fluctuations over the past few quarters. In Q4 2023, the working capital turnover ratio spiked to 2,581.33, indicating that the company generated significant revenue relative to its working capital investment during that period. This sharp increase may suggest efficient management of working capital to support business operations and generate sales.
Conversely, in Q3 2023, the working capital turnover ratio dropped significantly to 41.48. This could indicate a potential inefficiency in managing working capital during that quarter, possibly due to increased investments in current assets without a proportional increase in sales.
The lack of data for Q2 2023 suggests that there may be missing or unreported information for that period, limiting a comprehensive analysis for that quarter.
Comparing the ratios from Q4 2023 and Q3 2023, it is evident that there was a substantial change in the efficiency of working capital utilization between the two quarters. Further assessment of the reasons behind these fluctuations would help in understanding the company's working capital management practices and potential impact on its financial performance.
Peer comparison
Dec 31, 2023