XPO Logistics Inc (XPO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.00 | 1.08 | 1.05 | 1.04 | 1.03 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,593,000K ÷ $1,590,000K
= 1.00
The current ratio of XPO Inc has shown some fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 1.00, which indicates that the company's current assets are equal to its current liabilities. This may suggest a potential liquidity concern, as the company may have difficulty meeting its short-term obligations with current assets alone.
Comparing this to the previous years, we see that the current ratio has been above 1.00 in 2022, 2021, and 2020, indicating a healthier liquidity position during those periods. However, the slight decrease in the current ratio from 2022 to 2023 may raise concerns about the company's ability to cover its short-term liabilities.
It is important for stakeholders to monitor the current ratio closely as it provides insight into XPO Inc's short-term liquidity and ability to meet its financial obligations. Additionally, further examination of the underlying reasons for the fluctuations in the current ratio will be crucial in assessing the company's overall financial health and stability.
Peer comparison
Dec 31, 2023