XPO Logistics Inc (XPO)

Solvency ratios

	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
Debt-to-assets ratio	0.45	0.38	0.39	0.39	0.39	0.33	0.33	0.31	0.40	0.41	0.33	0.34	0.32	0.42	0.44	0.40	0.37	0.37	0.36	0.38
Debt-to-capital ratio	0.72	0.67	0.69	0.70	0.71	0.61	0.63	0.64	0.76	0.78	0.64	0.65	0.66	0.71	0.74	0.69	0.65	0.67	0.67	0.69
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
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

The solvency ratios of XPO Inc provide insight into the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable over the quarters, ranging from 0.34 to 0.45. This ratio indicates that around 34% to 45% of XPO Inc's assets are financed by debt. A decreasing trend in this ratio could suggest a lower reliance on debt to fund operations.

The debt-to-capital ratio has also shown consistency, hovering between 0.62 to 0.73. This ratio reflects the proportion of the company's capital that is funded by debt, with values around 62% to 73%. A lower debt-to-capital ratio may indicate a healthier capital structure with less reliance on debt financing.

The debt-to-equity ratio has fluctuated more significantly, ranging from 1.63 to 2.69. This ratio demonstrates the extent to which the company's operations are funded by debt relative to equity. An increasing trend in this ratio could signify higher financial risk due to a higher level of debt compared to equity.

The financial leverage ratio indicates the extent to which the company is using debt to finance its assets. XPO Inc's leverage ratio has varied from 4.76 to 6.19 over the quarters, highlighting fluctuations in the company's financial risk. A higher financial leverage ratio suggests a greater reliance on debt financing, which can magnify both returns and risks.

Overall, XPO Inc's solvency ratios reveal a mixed financial position, with stable debt-to-assets and debt-to-capital ratios but fluctuating debt-to-equity and financial leverage ratios. It is essential for investors and stakeholders to monitor these ratios to assess the company's long-term financial health and risk profile.

Coverage ratios

	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
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

The interest coverage ratio of XPO Inc has fluctuated over the past eight quarters, indicating changes in the company's ability to meet its interest expenses with its operating income. The highest interest coverage ratio was observed in Q3 2022 at 5.95, suggesting a strong ability to cover interest costs with operating income during that period.

However, the interest coverage ratio dropped notably in subsequent quarters, reaching its lowest point in Q3 2023 at 1.65. This decline may indicate potential challenges in meeting interest obligations with operating income during that quarter.

Overall, the trend in interest coverage ratios for XPO Inc shows some variability, with fluctuations observed across the quarters. It is essential for the company to closely monitor and manage its interest coverage ratio to ensure it maintains a healthy financial position and meets its debt obligations effectively.