XPO Logistics Inc (XPO)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	3,335,000	2,473,000	3,513,000	5,240,000	5,182,000
Total stockholders’ equity	US$ in thousands	1,266,000	1,012,000	1,138,000	2,709,000	2,743,000
Debt-to-capital ratio		0.72	0.71	0.76	0.66	0.65

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,335,000K ÷ ($3,335,000K + $1,266,000K)
= 0.72

The debt-to-capital ratio of XPO Inc has shown some fluctuations over the past five years. As of December 31, 2023, the ratio stands at 0.73, indicating that 73% of the company's capital structure is financed by debt. This represents a slight increase compared to 2022 when the ratio was 0.71. In 2021, the ratio increased to 0.76, before decreasing back to 0.71 in 2020 and further down to 0.66 in 2019.

The upward trend in the debt-to-capital ratio from 2020 to 2021 suggests that XPO Inc may have taken on more debt relative to its capital during that period. However, the subsequent decrease in the ratio in 2022 and the slight increase in 2023 indicate potential adjustments in the capital structure to reduce reliance on debt financing.

Overall, XPO Inc's debt-to-capital ratio has fluctuated in recent years, indicating shifts in the company's debt and equity composition. Further analysis of the company's debt management and capital structure decisions would be beneficial in understanding the implications of these changes on its financial health and risk profile.