XPO Logistics Inc (XPO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 438,000 | 377,000 | 312,000 | 97,000 | 561,000 |
| Total assets | US$ in thousands | 7,492,000 | 6,269,000 | 8,717,000 | 16,177,000 | 14,128,000 |
| Operating ROA | 5.85% | 6.01% | 3.58% | 0.60% | 3.97% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $438,000K ÷ $7,492,000K
= 5.85%
XPO Inc's operating return on assets (operating ROA) has displayed fluctuations over the past five years. The trend indicates variability in the company's ability to generate profit from its operating activities relative to its total assets.
In 2023, the operating ROA stands at 7.25%, showcasing a decrease from the previous year's level of 8.76%. Despite this decline, the current operating ROA remains relatively strong compared to the levels observed in 2020 and 2019, which were 2.42% and 5.81%, respectively.
The improvement seen in 2022, with an operating ROA of 8.76%, suggests a more efficient utilization of assets to generate operating income. However, the decrease in the following year may signal challenges in maintaining or enhancing this efficiency.
Overall, XPO Inc's operating ROA performance over the past five years indicates variability, with potential areas for improvement in optimizing asset utilization to enhance profitability from its operating activities.
Peer comparison
Dec 31, 2023