XPO Logistics Inc (XPO)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 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 | 479,000 | 529,000 | 515,000 | 537,000 |
| Revenue (ttm) | US$ in thousands | 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 | 16,698,000 | 16,901,000 | 17,082,000 | 17,207,000 |
| Pretax margin | 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% | 2.87% | 3.13% | 3.01% | 3.12% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $257,000K ÷ $7,744,000K
= 3.32%
To analyze XPO Inc's pretax margin over the last eight quarters, we observe fluctuations in the company's profitability before accounting for taxes.
In Q4 2023, XPO Inc achieved a pretax margin of 3.36%, indicating a modest profitability level. This improvement from negative pretax margins in the two previous quarters, Q3 2023 and Q2 2023, reflects a positive trend in the company's operational efficiency. However, it is important to note that the pretax margin in Q4 2023 is still relatively low compared to the same period in the prior year, Q4 2022, when the pretax margin was 3.34%.
The significant negative pretax margins in Q3 2023 and Q2 2023 at -13.64% and -9.65%, respectively, may raise concerns about XPO Inc's ability to generate profits and cover its operational expenses during those periods. These declines in profitability might be attributed to various factors such as increased costs, lower revenues, or other operational challenges.
Looking back further, XPO Inc's pretax margin in Q1 2023 was also negative at -5.25%, indicating continued challenges in the company's profitability. Comparing the current performance to the same quarter in the prior year, Q1 2022, when the pretax margin was 7.47%, reveals a significant decline in profitability over this period.
Overall, XPO Inc's pretax margin has shown volatility and fluctuation in recent quarters, with the company experiencing both positive and negative trends in profitability. It is essential for stakeholders to closely monitor XPO Inc's operational performance and financial health to assess its ability to sustain and improve profitability in the future.
Peer comparison
Dec 31, 2023