XPO Logistics Inc (XPO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 660,000 | 425,000 | 875,000 | 558,000 | 364,000 |
| Long-term debt | US$ in thousands | 3,325,000 | 3,335,000 | 2,473,000 | 3,513,000 | 5,240,000 |
| Total stockholders’ equity | US$ in thousands | 1,601,000 | 1,266,000 | 1,012,000 | 1,138,000 | 2,709,000 |
| Return on total capital | 13.40% | 9.24% | 25.11% | 12.00% | 4.58% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $660,000K ÷ ($3,325,000K + $1,601,000K)
= 13.40%
To analyze XPO Logistics Inc's return on total capital over the period from 2020 to 2024, we observe a fluctuating trend.
In 2020, the return on total capital stood at 4.58%, indicating the company generated $4.58 in profit for every $100 of total capital employed. The return increased significantly to 12.00% by the end of 2021, suggesting an improvement in capital utilization and profitability.
By December 31, 2022, XPO Logistics achieved a robust return on total capital of 25.11%, demonstrating exceptional efficiency in utilizing capital to generate profits. However, in the following year, the return dropped to 9.24%, possibly due to changes in the business environment or operational challenges.
In the most recent year, 2024, the return on total capital recovered to 13.40%, although it did not reach the high levels seen in 2022. This improvement indicates a potential rebound in capital efficiency and profitability for XPO Logistics.
Overall, the company's return on total capital exhibited fluctuations over the years, with notable increases and decreases. Continuous monitoring and evaluation of this ratio will be key to understanding XPO Logistics' ability to generate returns from the capital invested in its operations.
Peer comparison
Dec 31, 2024