XPO Logistics Inc (XPO)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 425,000 | 251,000 | 288,000 | 402,000 | 875,000 | 1,037,000 | 851,000 | 892,000 | 558,000 | 639,000 | 837,000 | 473,000 | 379,000 | 308,000 | 342,000 | 715,000 | 747,000 | 799,000 | 761,000 | 766,000 |
| Interest expense (ttm) | US$ in thousands | 168,000 | 158,000 | 152,000 | 140,000 | 135,000 | 138,000 | 156,000 | 183,000 | 211,000 | 258,000 | 286,000 | 310,000 | 317,000 | 285,000 | 279,000 | 269,000 | 268,000 | 270,000 | 246,000 | 229,000 |
| Interest coverage | 2.53 | 1.59 | 1.89 | 2.87 | 6.48 | 7.51 | 5.46 | 4.87 | 2.64 | 2.48 | 2.93 | 1.53 | 1.20 | 1.08 | 1.23 | 2.66 | 2.79 | 2.96 | 3.09 | 3.34 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $425,000K ÷ $168,000K
= 2.53
The interest coverage ratio for XPO Inc has fluctuated over the past eight quarters, ranging from a low of 1.65 in Q3 2023 to a high of 5.95 in Q3 2022. Generally, the interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. A higher ratio indicates that the company is more capable of servicing its debt.
XPO Inc's interest coverage ratio has shown some volatility, with a significant decrease in Q3 2023 compared to the previous quarter. This decline may raise concerns about the company's ability to cover its interest expenses with its operating income. It is important for investors and analysts to closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023