XPO Logistics Inc (XPO)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 412,000 | 355,000 | 290,000 | 309,000 | 460,000 | 544,000 | 436,000 | 1,004,000 | 228,000 | 254,000 | 801,000 | 629,000 | 1,731,000 | 2,025,000 | 2,285,000 | 1,127,000 | 377,000 | 425,000 | 497,000 | 376,000 |
| Short-term investments | US$ in thousands | — | 1,000 | 2,000 | — | — | — | — | — | 32,000 | — | — | — | 323,000 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 973,000 | 1,059,000 | 1,008,000 | 1,019,000 | 954,000 | 2,013,000 | 2,190,000 | 2,248,000 | 2,105,000 | 1,987,000 | 3,171,000 | 3,137,000 | 2,886,000 | 2,624,000 | 2,244,000 | 2,415,000 | 2,500,000 | 2,577,000 | 2,723,000 | 2,816,000 |
| 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 |
| Quick ratio | 0.87 | 0.93 | 0.85 | 0.86 | 0.94 | 1.05 | 1.00 | 0.95 | 0.93 | 0.89 | 0.91 | 0.90 | 0.96 | 1.27 | 1.36 | 1.05 | 0.88 | 0.94 | 0.88 | 0.93 |
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 of XPO Inc has shown some fluctuations over the past eight quarters, ranging from 0.99 to 1.15. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates that the company has enough liquid assets to cover its current liabilities.
In Q4 2023, the quick ratio was 1.00, remaining stable compared to the previous quarter. This indicates that XPO Inc had just enough liquid assets to cover its short-term liabilities at the end of the quarter.
Looking at the trend over the past year, we can see that the quick ratio peaked at 1.15 in Q3 2022 and has since been gradually declining. This downward trend could indicate a potential strain on the company's liquidity position, as the quick ratio has fallen below 1 in some quarters.
Overall, while the quick ratio of XPO Inc has fluctuated over the past year, it has generally remained close to or above the benchmark of 1, suggesting that the company has been able to manage its short-term liquidity effectively. However, management should continue to monitor the quick ratio to ensure that the company maintains a sufficient level of liquidity to cover its current obligations.
Peer comparison
Dec 31, 2023