XPO Logistics Inc (XPO)

The solvency ratios of XPO Inc over the past five years indicate the company's ability to meet its financial obligations and manage its debt levels. The debt-to-assets ratio has shown a slight increasing trend, from 0.37 in 2019 to 0.45 in 2023, implying that 45% of the company's assets are financed by debt in the most recent year.

Similarly, the debt-to-capital ratio has also increased over the period, reaching 0.73 in 2023. This ratio indicates that 73% of the company's capital is funded by debt, showing a higher reliance on borrowing to finance its operations.

The debt-to-equity ratio has fluctuated but generally trended upwards, from 1.92 in 2019 to 2.69 in 2023. This suggests that the company has been increasingly using debt to finance its operations compared to equity.

Lastly, the financial leverage ratio has also shown variability but has generally increased from 5.15 in 2019 to 5.92 in 2023. This ratio highlights the extent to which the company's operations are funded by debt compared to equity.

Overall, the increasing trend in these solvency ratios indicates that XPO Inc has been taking on more debt relative to its assets, capital, equity, and operations over the past five years. This may suggest a higher risk profile and increased financial leverage for the company.

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Coverage ratios

XPO Inc's interest coverage ratio has fluctuated over the past five years, ranging from a low of 1.20 in 2020 to a high of 4.07 in 2022. In general, a higher interest coverage ratio indicates the company's ability to meet its interest obligations through its operating income. However, the downward trend from 2022 to 2023 should be noted as it may suggest a decrease in the company's ability to cover its interest payments in the most recent year. It is important for investors and creditors to monitor this ratio closely to assess XPO Inc's financial health and its ability to handle debt obligations effectively in the future.