XPO Logistics Inc (XPO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 387,000 | 189,000 | 666,000 | 336,000 | 110,000 |
| Total stockholders’ equity | US$ in thousands | 1,601,000 | 1,266,000 | 1,012,000 | 1,138,000 | 2,709,000 |
| ROE | 24.17% | 14.93% | 65.81% | 29.53% | 4.06% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $387,000K ÷ $1,601,000K
= 24.17%
The return on equity (ROE) for XPO Logistics Inc has shown a fluctuating trend over the past five years.
In 2020, the ROE was at a relatively low 4.06%, indicating that the company's net income generated a modest return compared to shareholders' equity. However, there was a significant improvement in 2021, with the ROE surging to 29.53%, suggesting that the company became more efficient in utilizing equity to generate profits.
By 2022, XPO Logistics Inc's ROE significantly increased to 65.81%, indicating a substantial improvement in the profitability of the company relative to its shareholders' equity. This sharp rise suggests that the company was able to generate higher returns for its shareholders through better financial management or increased profitability.
However, in 2023, there was a notable drop in ROE to 14.93%, indicating a decrease in the efficiency of the company in generating profits from the shareholders' equity. This could be attributed to various internal or external factors affecting the company's financial performance.
In 2024, the ROE showed an improvement to 24.17%, although still below the peak of 2022. This indicates a recovery in the company's ability to generate returns for its shareholders, albeit not reaching the levels seen in the previous year.
Overall, XPO Logistics Inc's return on equity has exhibited fluctuations over the past five years, with periods of both improvement and decline. It would be important for stakeholders to monitor these trends closely to assess the company's financial performance and evaluate its ability to generate returns for shareholders in the future.
Peer comparison
Dec 31, 2024