XPO Logistics Inc (XPO)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,492,000 | 6,428,000 | 6,352,000 | 6,348,000 | 6,269,000 | 8,503,000 | 8,640,000 | 9,320,000 | 8,717,000 | 8,533,000 | 15,564,000 | 15,369,000 | 16,177,000 | 15,745,000 | 15,641,000 | 14,562,000 | 14,128,000 | 13,916,000 | 14,314,000 | 14,196,000 |
| 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 |
| Financial leverage ratio | 5.92 | 5.37 | 5.68 | 6.02 | 6.19 | 4.76 | 5.06 | 5.83 | 7.66 | 8.40 | 5.32 | 5.54 | 5.97 | 5.94 | 6.30 | 5.65 | 5.15 | 5.41 | 5.71 | 5.82 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,492,000K ÷ $1,266,000K
= 5.92
The financial leverage ratio of XPO Inc has shown fluctuations over the past eight quarters. In Q4 2023, the ratio was 5.92, indicating that the company's reliance on debt financing to fund its operations was relatively high compared to previous quarters. This increase in leverage could potentially signify increased risk for the company due to higher debt levels.
However, in Q3 2023 and Q2 2023, the financial leverage ratio decreased to 5.37 and 5.68 respectively, suggesting a reduction in the company's debt levels relative to its equity. This might indicate a shift towards a more conservative financing structure or improved financial stability.
In contrast, the financial leverage ratio spiked to 6.02 in Q1 2023 and 6.19 in Q4 2022, indicating a significant increase in debt relative to equity during those periods. This could raise concerns about the company's ability to meet its debt obligations and manage financial risk.
Overall, the trend in XPO Inc's financial leverage ratio in recent quarters suggests fluctuations in the company's capital structure and financial risk profile. It would be prudent for stakeholders to closely monitor the company's debt levels and assess the potential impact on its overall financial health and stability.
Peer comparison
Dec 31, 2023