XPO Logistics Inc (XPO)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 438,000 | 323,000 | 308,000 | 372,000 | 377,000 | 439,000 | 365,000 | 314,000 | 312,000 | 399,000 | 472,000 | 251,000 | 228,000 | 17,000 | 108,000 | 467,000 | 561,000 | 745,000 | 725,000 | 695,000 |
| Total assets | US$ in thousands | 7,492,000 | 6,428,000 | 6,352,000 | 6,348,000 | 6,269,000 | 8,503,000 | 8,640,000 | 9,320,000 | 8,717,000 | 8,533,000 | 15,564,000 | 15,369,000 | 16,177,000 | 15,745,000 | 15,641,000 | 14,562,000 | 14,128,000 | 13,916,000 | 14,314,000 | 14,196,000 |
| Operating ROA | 5.85% | 5.02% | 4.85% | 5.86% | 6.01% | 5.16% | 4.22% | 3.37% | 3.58% | 4.68% | 3.03% | 1.63% | 1.41% | 0.11% | 0.69% | 3.21% | 3.97% | 5.35% | 5.06% | 4.90% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $438,000K ÷ $7,492,000K
= 5.85%
XPO Inc's operating return on assets (operating ROA) fluctuated over the past eight quarters, ranging from a high of 9.03% in Q3 2022 to a low of 4.06% in Q3 2023. The average operating ROA over this period was 6.85%.
The operating ROA indicates the company's efficiency in generating profits from its assets used in operations. A higher operating ROA signifies better operational performance and asset utilization. XPO Inc's operating ROA has generally been above 7% in the past quarters, indicating a relatively efficient operation.
However, the decreasing trend from Q3 2022 to Q3 2023, where the operating ROA dropped from 9.03% to 4.06%, is a point of concern. This decline could suggest potential issues affecting the company's profitability or asset management during this period.
Overall, while XPO Inc has maintained a strong operating ROA in recent quarters, investors and stakeholders should keep a close eye on any further changes in this metric to assess the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023