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XPO Logistics Beneish M-Score

: -2.90 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for XPO Logistics's Beneish M-Score or its related term are showing as below:

XPO' s Beneish M-Score Range Over the Past 10 Years
Min: -12.54   Med: -2.39   Max: 52.92
Current: -2.9

During the past 13 years, the highest Beneish M-Score of XPO Logistics was 52.92. The lowest was -12.54. And the median was -2.39.


XPO Logistics Beneish M-Score Historical Data

The historical data trend for XPO Logistics's Beneish M-Score 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
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.46 -2.82 -2.40 -2.93 -2.54

XPO Logistics Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score 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 -2.23 -2.79 -2.54 -3.00 -2.90

Competitive Comparison

For the Integrated Freight & Logistics subindustry, XPO Logistics's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Transportation industry and Industrials sector, XPO Logistics's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where XPO Logistics's Beneish M-Score falls into.



XPO Logistics Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of XPO Logistics for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.6105+0.528 * 1.0093+0.404 * 0.9489+0.892 * 1.1313+0.115 * 0.3932
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9383+4.679 * -0.0255-0.327 * 0.9597
=-2.90

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $2,190 Mil.
Revenue was 3232 + 3473 + 3361 + 3270 = $13,336 Mil.
Gross Profit was 599 + 535 + 509 + 480 = $2,123 Mil.
Total Current Assets was $2,916 Mil.
Total Assets was $8,640 Mil.
Property, Plant and Equipment(Net PPE) was $2,631 Mil.
Depreciation, Depletion and Amortization(DDA) was $468 Mil.
Selling, General, & Admin. Expense(SGA) was $1,328 Mil.
Total Current Liabilities was $2,634 Mil.
Long-Term Debt & Capital Lease Obligation was $3,546 Mil.
Net Income was 141 + 488 + 122 + -57 = $694 Mil.
Non Operating Income was -56 + 448 + 0 + -56 = $336 Mil.
Cash Flow from Operations was 195 + 201 + 95 + 87 = $578 Mil.
Total Receivables was $3,171 Mil.
Revenue was 3186 + 2989 + 2938 + 2675 = $11,788 Mil.
Gross Profit was 522 + 483 + 457 + 432 = $1,894 Mil.
Total Current Assets was $4,464 Mil.
Total Assets was $15,564 Mil.
Property, Plant and Equipment(Net PPE) was $5,228 Mil.
Depreciation, Depletion and Amortization(DDA) was $330 Mil.
Selling, General, & Admin. Expense(SGA) was $1,251 Mil.
Total Current Liabilities was $4,377 Mil.
Long-Term Debt & Capital Lease Obligation was $7,223 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2190 / 13336) / (3171 / 11788)
=0.16421716 / 0.26900238
=0.6105

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1894 / 11788) / (2123 / 13336)
=0.16067187 / 0.15919316
=1.0093

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2916 + 2631) / 8640) / (1 - (4464 + 5228) / 15564)
=0.35798611 / 0.3772809
=0.9489

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=13336 / 11788
=1.1313

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(330 / (330 + 5228)) / (468 / (468 + 2631))
=0.05937388 / 0.15101646
=0.3932

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1328 / 13336) / (1251 / 11788)
=0.09958008 / 0.10612487
=0.9383

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3546 + 2634) / 8640) / ((7223 + 4377) / 15564)
=0.71527778 / 0.74530969
=0.9597

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(694 - 336 - 578) / 8640
=-0.0255

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

XPO Logistics has a M-score of -2.90 suggests that the company is unlikely to be a manipulator.


XPO Logistics Beneish M-Score Related Terms

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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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