XPO Logistics Inc (XPO)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	7,492,000	6,428,000	6,352,000	6,348,000	6,269,000	8,503,000	8,640,000	9,320,000	8,717,000	8,533,000	15,564,000	15,369,000	16,177,000	15,745,000	15,641,000	14,562,000	14,128,000	13,916,000	14,314,000	14,196,000
Debt-to-assets ratio		0.45	0.38	0.39	0.39	0.39	0.33	0.33	0.31	0.40	0.41	0.33	0.34	0.32	0.42	0.44	0.40	0.37	0.37	0.36	0.38

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,335,000K ÷ $7,492,000K
= 0.45

The debt-to-assets ratio of XPO Inc has been relatively stable over the past eight quarters, ranging from 0.34 to 0.45. This ratio indicates the proportion of the company's assets financed by debt. A higher ratio suggests a larger portion of assets is funded by debt, indicating increased financial risk.

XPO Inc's debt-to-assets ratio has shown a slight upward trend in recent quarters, increasing from 0.34 in Q2 2022 to 0.45 in Q4 2023. This uptick may be a cause for concern as it suggests a higher reliance on debt to finance assets. However, the ratio has fluctuated within a narrow range, indicating a relatively balanced capital structure.

Overall, XPO Inc's debt-to-assets ratio suggests a moderate level of leverage and financial risk, which should be monitored closely to ensure sustainable financial health and adequate debt repayment capacity.