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XPO Logistics Interest Coverage

: 8.87 (As of Jun. 2022)
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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 Logistics's Operating Income for the three months ended in Jun. 2022 was $275 Mil. XPO Logistics's Interest Expense for the three months ended in Jun. 2022 was $-31 Mil. XPO Logistics's interest coverage for the quarter that ended in Jun. 2022 was 8.87. The higher the ratio, the stronger the company's financial strength is.

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

XPO' s Interest Coverage Range Over the Past 10 Years
Min: 1.09   Med: 2.15   Max: 5.1
Current: 5.1


XPO's Interest Coverage is ranked worse than
60.19% of 726 companies
in the Transportation industry
Industry Median: 7.61 vs XPO: 5.10

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 Logistics Interest Coverage Historical Data

The historical data trend for XPO Logistics'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.

* Premium members only.

XPO Logistics Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.05 3.24 2.24 1.09 3.18

XPO Logistics Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.41 2.66 5.37 5.16 8.87

Competitive Comparison

For the Integrated Freight & Logistics subindustry, XPO Logistics'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 Logistics Interest Coverage Distribution

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

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



XPO Logistics 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.


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 Logistics's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, XPO Logistics's Interest Expense was $-211 Mil. Its Operating Income was $672 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,266 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*672/-211
=3.18

XPO Logistics's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, XPO Logistics's Interest Expense was $-31 Mil. Its Operating Income was $275 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,546 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*275/-31
=8.87

* 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.

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


XPO Logistics  (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 Logistics Interest Coverage Related Terms

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


XPO Logistics Business Description

XPO Logistics logo
Traded in Other Exchanges
Address
Five American Lane, Greenwich, CT, USA, 06831
XPO Logistics is a diversified trucking and logistics company, built mostly via acquisition (until 2016). Following the third-quarter 2021 spin-off of its global contract logistics division (outsourced warehousing and supply-chain services), XPO's portfolio reflects its transportation operations--asset-based less-than-truckload shipping (33% of gross revenue), asset-light freight brokerage including intermodal and truck brokerage (29%), heavy goods last mile delivery (8%), and its European truckload and LTL operations (24%). The remainder of revenue stems from managed transportation and global forwarding services.
Executives
Brown Christopher Michael officer: Chief Accounting Officer C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Bradley S Jacobs director, 10 percent owner, officer: Chief Executive Officer C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Tulsyan Ravi officer: Chief Financial Officer C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Aiken Jason W director C/O GENERAL DYNAMICS CORPORATION 2941 FAIRVIEW PARK DRIVE, SUITE 100 FALLS CHURCH VA 22042
Kissel Mary E. director C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Landry Allison director C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Taylor Johnny Clayton Jr. director C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Jacobs Private Equity, Llc director, 10 percent owner 350 ROUND HILL ROAD GREENWICH CT 06831
Spruce House Partnership Llc 10 percent owner 435 HUDSON STREET 8TH FLOOR NEW YORK NY 10014
Spruce House Partnership (qp) Lp 10 percent owner 435 HUDSON ST #804 NEW YORK NY 10014
Wyshner David B officer: Chief Financial Officer C/O XPO LOGISTICS, INC. FIVE AMERICAN LANE GREENWICH CT 06831
Rogers Kurt officer: Chief Legal Officer STERICYCLE, INC 2355 WAUKEGAN ROAD BANNOCKBURN IL 60015
Kekedjian Aris director 655 THIRD AVENUE, 8TH FLOOR 10017 NY 10017
Colucci Marlene M director C/O GXO LOGISTICS, INC. TWO AMERICAN LANE GREENWICH CT 06831
Sternberg Zachary 10 percent owner 435 HUDSON STREET SUITE 804 NEW YORK NY 10014

XPO Logistics Headlines

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