XPO Logistics Inc (XPO)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.72 | 0.67 | 0.69 | 0.70 | 0.71 | 0.61 | 0.63 | 0.64 | 0.76 | 0.78 | 0.64 | 0.65 | 0.66 | 0.71 | 0.74 | 0.69 | 0.65 | 0.67 | 0.67 | 0.69 |
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 eight quarters. In Q4 2023, the ratio increased to 0.73 from 0.68 in Q3 2023. This indicates that the company's level of debt relative to its total capital also increased during this period. It is important to note that a higher debt-to-capital ratio suggests that a larger portion of the company's capital structure is financed through debt.
Comparing Q4 2023 to the same quarter in the previous year, there has been a slight increase from 0.71 to 0.73. This suggests that there may have been an increase in the company's debt obligations relative to its total capital structure over the year.
Overall, while the debt-to-capital ratio has shown fluctuations, it has generally remained above 0.6 over the past eight quarters, indicating that XPO Inc relies significantly on debt financing. It is essential for stakeholders to monitor this ratio closely as higher debt levels can increase financial risk and impact the company's overall financial health and stability.
Peer comparison
Dec 31, 2023