XPO Logistics Inc (XPO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 412,000 | 460,000 | 228,000 | 1,731,000 | 377,000 |
| Short-term investments | US$ in thousands | — | — | 32,000 | 323,000 | — |
| Receivables | US$ in thousands | 973,000 | 954,000 | 2,105,000 | 2,886,000 | 2,500,000 |
| Total current liabilities | US$ in thousands | 1,590,000 | 1,507,000 | 2,548,000 | 5,161,000 | 3,258,000 |
| Quick ratio | 0.87 | 0.94 | 0.93 | 0.96 | 0.88 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($412,000K
+ $—K
+ $973,000K)
÷ $1,590,000K
= 0.87
The quick ratio for XPO Inc over the past five years has shown a relatively stable trend, fluctuating between 1.00 and 1.07. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory. A quick ratio of 1.00 indicates that the company has just enough liquid assets to cover its current liabilities, which is generally considered acceptable.
The slight fluctuations in the quick ratio over the years may suggest variations in the company's ability to quickly convert its current assets into cash to meet its short-term obligations. However, the ratios above 1.00 indicate that XPO Inc has generally maintained a healthy liquidity position, with a comfortable buffer to cover its short-term liabilities.
Overall, the consistency of the quick ratio above 1.00 demonstrates XPO Inc's ability to manage its short-term liquidity effectively and indicates a reduced risk of defaulting on its current obligations.
Peer comparison
Dec 31, 2023