XPO Logistics (XPAR:XPO) Operating Income : €189 Mil (TTM As of Dec. 2020)

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What is XPO Logistics Operating Income?

XPO Logistics's Operating Income for the six months ended in Dec. 2020 was €143 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2020 was €189 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. XPO Logistics's Operating Income for the six months ended in Dec. 2020 was €143 Mil. XPO Logistics's Revenue for the six months ended in Dec. 2020 was €3,164 Mil. Therefore, XPO Logistics's Operating Margin % for the quarter that ended in Dec. 2020 was 4.53%.

XPO Logistics's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. XPO Logistics's annualized ROC % for the quarter that ended in Dec. 2020 was 4.95%. XPO Logistics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 was 18.54%.

XPO Logistics Operating Income Historical Data

The historical data trend for XPO Logistics's Operating Income 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 Operating Income Chart

XPO Logistics Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Operating Income

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183.24

210.45

192.36

294.17

188.89

XPO Logistics Semi-Annual Data
	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20
Operating Income	Get a 7-Day Free Trial															75.26	142.23	151.94	45.45	143.45

XPO Logistics Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2020 adds up the semi-annually data reported by the company within the most recent 12 months, which was €189 Mil.

XPO Logistics (XPAR:XPO) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

XPO Logistics's annualized ROC % for the quarter that ended in Dec. 2020 is calculated as:

	ROC % (Q: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2020 )	+	Invested Capital (Q: Dec. 2020 ))	/ count )
=	286.89 * ( 1 - 32.88% )	/	( (3909.387	+	3876.381)	/ 2 )
=	192.560568	/	3892.884
=	4.95 %

where

	Invested Capital		(Q: Jun. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4657.227	-	946.639	-	( 288.842	-	max(0, 1937.217	-	1738.418	+	288.842	))
=	3909.387

	Invested Capital		(Q: Dec. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4646.886	-	968.701	-	( 325.857	-	max(0, 2052.55	-	1854.354	+	325.857	))
=	3876.381

Note: The Operating Income data used here is two times the semi-annual (Dec. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

XPO Logistics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2020		Q: Dec. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	272.08	/	( ( (1500.916 + max(-99.403, 0))	+	(1434.926 + max(-51.236, 0)) )	/	2 )
=	272.08	/	( ( 1500.916	+	1434.926 )	/	2 )
=	272.08	/	1467.921
=	18.54 %

where Working Capital is:

	Working Capital		(Q: Jun. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1043.038	+	21.598	+	384.94)	-	(946.639	+	0	+	602.34)
=	-99.403

	Working Capital		(Q: Dec. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1137.379	+	21.143	+	369.975)	-	(968.701	+	0	+	611.032)
=	-51.236

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

XPO Logistics's Operating Margin % for the quarter that ended in Dec. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2020 )	/	Revenue (Q: Dec. 2020 )
	=	143.445	/	3164.273
	=	4.53 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

XPO Logistics Operating Income Related Terms

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XPO Logistics (XPAR:XPO) Business Description

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Traded in Other Exchanges

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Address

192 Avenue Thiers, Cedex 6, Lyon, FRA, 69457

Website

http://europe.xpo.com

XPO Logistics SA is a provider of transportation and logistics services. It provides technology-enabled solutions for automotive and industrial customers. The company provides services to chemical, oil and gas, fashion, healthcare, industrial and construction, retail and e-commerce, technology and electrical goods, and food and beverage sectors.