XPO (XPO) Interest Coverage

: 3.48 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. XPO's Operating Income for the three months ended in Dec. 2023 was $146 Mil. XPO's Interest Expense for the three months ended in Dec. 2023 was $-42 Mil. XPO's interest coverage for the quarter that ended in Dec. 2023 was 3.48. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for XPO's Interest Coverage or its related term are showing as below:

XPO' s Interest Coverage Range Over the Past 10 Years
Min: 0.6 Med: 2.15 Max: 3.62
Current: 3.23

XPO's Interest Coverage is ranked worse than
67.69% of 814 companies
in the Transportation industry
Industry Median: 5.64 vs XPO: 3.23

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

XPO Interest Coverage Historical Data

The historical data trend for XPO's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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XPO Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.24

0.60

1.40

3.62

3.23

XPO Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.75	2.40	3.07	4.00	3.48

Competitive Comparison

For the Trucking subindustry, XPO's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

XPO Interest Coverage Distribution

For the Transportation industry and Industrials sector, XPO's Interest Coverage distribution charts can be found below:

* The bar in red indicates where XPO's Interest Coverage falls into.

XPO Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

XPO's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, XPO's Interest Expense was $-168 Mil. Its Operating Income was $543 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,923 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	543	/	-168
	=	3.23

XPO's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, XPO's Interest Expense was $-42 Mil. Its Operating Income was $146 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,923 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	146	/	-42
	=	3.48

The higher the ratio, the stronger the company's Financial Strength is.

XPO (NYSE:XPO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

XPO Interest Coverage Related Terms

Thank you for viewing the detailed overview of XPO's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

XPO (XPO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » XPO Inc (NYSE:XPO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

XPO:Mexico UX2A:Germany

Address

Five American Lane, Greenwich, CT, USA, 06831

Website

https://www.xpo.com

Following the spinoff of its contract logistics division (GXO) in 2021 and freight brokerage operations (RXO) in 2022, XPO is moving closer to becoming a pure-play asset-based less-than-truckload carrier. On a pro forma basis for the November RXO spinoff, We estimate LTL shipping now makes up 60% of total revenue, with XPO's European truckload and LTL operations making up 40%. That said, XPO's LTL segment EBITDA mix is much higher than 60%. We believe XPO intends to divest its European trucking division once it finds the right buyer.

Executives

Mario A Harik	officer: Chief Information Officer	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
J Wes Frye	director	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Kyle Wismans	officer: Chief Financial Officer	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Allison Landry	director	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
David J. Bates	officer: Chief Operating Officer	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Wendy Cassity	officer: Chief Legal Officer	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Anderson Carl Douglas Ii	officer: Chief Financial Officer	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Bella Loykhter Allaire	director	880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Irene Moshouris	director	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Farhad Nanji	10 percent owner	C/O HIGHFIELDS CAPITAL MANAGEMENT LP, 200 CLARENDON STREET, BOSTON MA 02116
S Jacobs Bradley	director, officer: Chief Executive Officer	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Mfn Partners Management, Llc	10 percent owner	222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
Mfn Partners Gp, Llc	10 percent owner	222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
Michael Demichele	10 percent owner	222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
Mfn Partners, Lp	10 percent owner	222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116