XPO Logistics Inc (XPO)
Debt-to-equity 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-equity ratio | 2.63 | 2.44 | 3.09 | 1.93 | 1.89 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,335,000K ÷ $1,266,000K
= 2.63
The debt-to-equity ratio of XPO Inc has shown fluctuations over the past five years. In 2023, the ratio stands at 2.69, marking an increase from the previous year. This implies that for every dollar of equity, the company has $2.69 in debt.
Comparing this to 2021, where the ratio was 3.14, we see a decrease in 2023 signaling a potential improvement in the company's leverage position. However, it is important to note that in 2020 and 2022, the company had lower debt-to-equity ratios of 2.48 and 2.50, respectively, indicating a higher proportion of equity relative to debt during those years.
The trend of XPO Inc's debt-to-equity ratio suggests some variability in the company's capital structure and financing decisions over time. It may be valuable to further analyze the reasons behind these fluctuations and assess how they align with the company's overall financial strategy and industry benchmarks.
Peer comparison
Dec 31, 2023