XPO Logistics Inc (XPO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,712,000 | 7,492,000 | 6,269,000 | 8,717,000 | 16,177,000 |
| Total stockholders’ equity | US$ in thousands | 1,601,000 | 1,266,000 | 1,012,000 | 1,138,000 | 2,709,000 |
| Financial leverage ratio | 4.82 | 5.92 | 6.19 | 7.66 | 5.97 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,712,000K ÷ $1,601,000K
= 4.82
The financial leverage ratio of XPO Logistics Inc has shown fluctuation over the past five years. As of December 31, 2020, the ratio was 5.97, indicating that the company had a higher level of debt relative to its equity. This ratio increased to 7.66 by December 31, 2021, signaling a significant rise in leverage. However, in the following years, there was a declining trend in the ratio, with values of 6.19, 5.92, and 4.82 as of December 31, 2022, 2023, and 2024, respectively.
The decrease in the financial leverage ratio from 2021 to 2024 suggests that XPO Logistics Inc has been reducing its reliance on debt financing and improving its financial structure by increasing equity contributions or paying off debt. This downward trend indicates a potentially stronger financial position and lower financial risk for the company in recent years. It is important for stakeholders to monitor this trend to ensure sustainable and balanced capital structure management.
Peer comparison
Dec 31, 2024