XPO Logistics Inc (XPO)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 473,000 | 450,000 | 430,000 | 329,000 | 257,000 | 93,000 | 136,000 | 262,000 | 740,000 | 899,000 | 695,000 | 709,000 | 347,000 | 381,000 | 551,000 | 163,000 | 62,000 | 23,000 | 63,000 | 446,000 |
| Revenue (ttm) | US$ in thousands | 8,112,000 | 8,090,000 | 8,017,000 | 7,855,000 | 7,744,000 | 7,635,000 | 7,601,000 | 7,731,000 | 7,718,000 | 9,283,000 | 10,607,000 | 11,746,000 | 12,841,000 | 12,465,000 | 11,870,000 | 12,186,000 | 13,061,000 | 14,227,000 | 15,706,000 | 16,442,000 |
| Pretax margin | 5.83% | 5.56% | 5.36% | 4.19% | 3.32% | 1.22% | 1.79% | 3.39% | 9.59% | 9.68% | 6.55% | 6.04% | 2.70% | 3.06% | 4.64% | 1.34% | 0.47% | 0.16% | 0.40% | 2.71% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $473,000K ÷ $8,112,000K
= 5.83%
The pretax margin of XPO Logistics Inc has shown volatility over the past few years, ranging from as low as 0.16% in September 2020 to as high as 9.68% in September 2022. The trend has generally been positive since March 2020, with intermittent fluctuations. Notably, there was a significant improvement in pretax margin from March 2022 to December 2022, where it increased from 6.04% to 9.59%.
However, in the subsequent quarters, the pretax margin experienced a decline before stabilizing in the range of 3-6% in the period from March 2023 to December 2024. The company's ability to generate profits before taxes has improved in recent periods compared to the early quarters of 2020, indicating better cost management or revenue generation strategies.
It is essential for investors and stakeholders to monitor the pretax margin closely, as it provides insight into the company's operational efficiency and profitability before accounting for taxes. The company should focus on sustaining or improving its pretax margin to ensure long-term financial health and value creation for shareholders.
Peer comparison
Dec 31, 2024