XPO Logistics Inc (XPO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 660,000 | 438,000 | 377,000 | 312,000 | 97,000 |
| Total assets | US$ in thousands | 7,712,000 | 7,492,000 | 6,269,000 | 8,717,000 | 16,177,000 |
| Operating ROA | 8.56% | 5.85% | 6.01% | 3.58% | 0.60% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $660,000K ÷ $7,712,000K
= 8.56%
Operating return on assets (Operating ROA) shows the efficiency of XPO Logistics Inc in generating operating income from its assets. Over the past five years, there has been a significant improvement in XPO Logistics Inc's Operating ROA performance.
As of December 31, 2020, the Operating ROA stood at 0.60%, indicating a relatively low return generated from its assets in that year. However, the company's performance notably improved in the subsequent years. By December 31, 2021, the Operating ROA had increased to 3.58%, showing a strong upward trend in profitability relative to its asset base.
In the following years, XPO Logistics Inc continued to enhance its operational efficiency and asset utilization. By December 31, 2022, the Operating ROA rose to 6.01%, signaling a more effective management of assets to generate operating income. The trend persisted with the Operating ROA reaching 5.85% by December 31, 2023, highlighting the company's sustained ability to generate earnings from its assets.
The most recent data point as of December 31, 2024, shows a further improvement in XPO Logistics Inc's performance, with the Operating ROA reaching 8.56%. This indicates a significant enhancement in the company's profitability relative to its asset base, reflecting a strong operational performance.
Overall, XPO Logistics Inc has demonstrated a commendable improvement in its Operating ROA over the past five years, reflecting efficient utilization of assets to drive operating income growth. This trend suggests positive prospects for the company's operational performance and financial health.
Peer comparison
Dec 31, 2024