XPO Logistics Inc (XPO)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 670,000 | 641,000 | 621,000 | 513,000 | 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 |
| Long-term debt | US$ in thousands | 3,325,000 | 3,343,000 | 3,330,000 | 3,323,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,601,000 | 1,641,000 | 1,499,000 | 1,332,000 | 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 |
| Return on total capital | 13.60% | 12.86% | 12.86% | 11.02% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $670,000K ÷ ($3,325,000K + $1,601,000K)
= 13.60%
The return on total capital for XPO Logistics Inc has shown variability over the reported periods. It increased from 8.57% as of March 31, 2020, to a peak of 25.11% by December 31, 2022, reflecting improved capital efficiency and profitability during this period.
However, the return on total capital dipped in the following periods, indicating potential challenges in maintaining the same level of profitability. For instance, as of June 30, 2023, the return dropped to 8.06% from the peak of 25.11% achieved in December 2022.
There were fluctuations in the return on total capital in the subsequent periods, showing a range between 6.89% and 13.60%. This volatility could be attributed to various factors such as changes in the company's capital structure, operational performance, and economic conditions impacting the logistics industry.
Overall, while the return on total capital improved significantly during some periods, the fluctuations observed suggest the need for XPO Logistics Inc to focus on maintaining sustainable profitability and efficient capital utilization in order to create long-term value for the shareholders.
Peer comparison
Dec 31, 2024