XPO Logistics Inc (XPO)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 425,000 | 251,000 | 288,000 | 402,000 | 875,000 | 1,037,000 | 851,000 | 892,000 | 558,000 | 639,000 | 837,000 | 473,000 | 379,000 | 308,000 | 342,000 | 715,000 | 747,000 | 799,000 | 761,000 | 766,000 |
| Long-term debt | US$ in thousands | 3,335,000 | 2,447,000 | 2,452,000 | 2,478,000 | 2,473,000 | 2,848,000 | 2,857,000 | 2,877,000 | 3,513,000 | 3,515,000 | 5,181,000 | 5,162,000 | 5,240,000 | 6,545,000 | 6,939,000 | 5,766,000 | 5,182,000 | 5,121,000 | 5,134,000 | 5,362,000 |
| Total stockholders’ equity | US$ in thousands | 1,266,000 | 1,197,000 | 1,119,000 | 1,055,000 | 1,012,000 | 1,786,000 | 1,707,000 | 1,598,000 | 1,138,000 | 1,016,000 | 2,927,000 | 2,776,000 | 2,709,000 | 2,649,000 | 2,484,000 | 2,578,000 | 2,743,000 | 2,572,000 | 2,505,000 | 2,438,000 |
| Return on total capital | 9.24% | 6.89% | 8.06% | 11.38% | 25.11% | 22.38% | 18.65% | 19.93% | 12.00% | 14.10% | 10.32% | 5.96% | 4.77% | 3.35% | 3.63% | 8.57% | 9.43% | 10.39% | 9.96% | 9.82% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $425,000K ÷ ($3,335,000K + $1,266,000K)
= 9.24%
The return on total capital for XPO Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the return on total capital was 11.63%, which was lower compared to the previous quarter but higher than Q2 and Q3 2023. However, the return on total capital in Q1 2023 was relatively higher at 12.75%.
Looking back at Q4 2022, XPO Inc achieved a return on total capital of 15.49%, which was the highest among the past eight quarters. The return on total capital has been gradually decreasing since then, with Q3 2023 seeing the lowest return at 7.04%.
Overall, the trend in return on total capital for XPO Inc has been somewhat declining over the past year, indicating that the company may be becoming less efficient in generating returns from its total capital. Further analysis and investigation may be needed to understand the factors contributing to these fluctuations and to address any underlying issues affecting the company's overall capital efficiency.
Peer comparison
Dec 31, 2023