XPO Logistics Inc (XPO)
Debt-to-equity 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-equity ratio | 2.63 | 2.04 | 2.19 | 2.35 | 2.44 | 1.59 | 1.67 | 1.80 | 3.09 | 3.46 | 1.77 | 1.86 | 1.93 | 2.47 | 2.79 | 2.24 | 1.89 | 1.99 | 2.05 | 2.20 |
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 fluctuated over the past eight quarters, ranging from a low of 1.63 to a high of 2.69. The ratio indicates the proportion of debt financing the company is using in relation to shareholders' equity. A higher ratio suggests that a company is more reliant on debt to finance its operations and growth, which can increase financial risk. Conversely, a lower ratio indicates a healthier balance between debt and equity financing.
In the most recent quarter, Q4 2023, XPO Inc's debt-to-equity ratio was 2.69, the highest level in the period analyzed. This suggests a significant increase in debt relative to equity, which may raise concerns about the company's financial stability and ability to meet its debt obligations.
On the other hand, in Q3 2022, the company had a relatively lower debt-to-equity ratio of 1.63, signaling a more conservative capital structure with less reliance on debt financing. This could indicate a more sustainable financial position with lower financial risk.
Overall, the trend of increasing debt-to-equity ratios in the recent quarters may warrant further investigation into XPO Inc's debt management practices and overall financial health. Monitoring this ratio over time can provide valuable insights into the company's capital structure strategy and financial risk profile.
Peer comparison
Dec 31, 2023