XPO Logistics Inc (XPO)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 670,000 | 641,000 | 621,000 | 513,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 223,000 | 212,000 | 197,000 | 184,000 | 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 |
| Interest coverage | 3.00 | 3.02 | 3.15 | 2.79 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $670,000K ÷ $223,000K
= 3.00
Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations from its operating earnings. A higher interest coverage ratio is generally considered favorable as it suggests that the company is generating sufficient earnings to cover its interest expenses.
Analyzing XPO Logistics Inc's interest coverage ratio over the past few quarters, we observe fluctuations in the ratio. As of December 31, 2024, the interest coverage ratio stood at 3.00, indicating that the company generated earnings 3 times higher than its interest expenses during that period. This suggests a relatively healthy position in terms of servicing its debt obligations.
However, it's worth noting that the interest coverage ratio for XPO Logistics Inc has varied over time. The ratio has ranged from a low of 1.08 in September 30, 2020, to a high of 7.51 in September 30, 2022. Fluctuations in the interest coverage ratio could be influenced by changes in operating performance, interest rates, debt levels, or other financial factors.
Overall, a consistently healthy interest coverage ratio indicates XPO Logistics Inc's ability to comfortably meet its interest payments using its operating earnings. Monitoring this ratio over time can provide insights into the company's financial health and debt repayment capacity.
Peer comparison
Dec 31, 2024