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XPO (XPO) Quick Ratio : 1.06 (As of Sep. 2024)


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What is XPO Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. XPO's quick ratio for the quarter that ended in Sep. 2024 was 1.06.

XPO has a quick ratio of 1.06. It generally indicates good short-term financial strength.

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

XPO' s Quick Ratio Range Over the Past 10 Years
Min: 0.94   Med: 1.11   Max: 3.93
Current: 1.06

During the past 13 years, XPO's highest Quick Ratio was 3.93. The lowest was 0.94. And the median was 1.11.

XPO's Quick Ratio is ranked worse than
62.13% of 969 companies
in the Transportation industry
Industry Median: 1.29 vs XPO: 1.06

XPO Quick Ratio Historical Data

The historical data trend for XPO's Quick Ratio 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 Quick Ratio Chart

XPO Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.03 1.04 1.05 1.08 1.00

XPO Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Quick Ratio Get a 7-Day Free Trial 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 1.06 1.00 0.94 1.00 1.06

Competitive Comparison of XPO's Quick Ratio

For the Trucking subindustry, XPO's Quick Ratio, along with its competitors' market caps and Quick Ratio 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's Quick Ratio Distribution in the Transportation Industry

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

* The bar in red indicates where XPO's Quick Ratio falls into.



XPO Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

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

Quick Ratio (A: Dec. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1593-0)/1590
=1.00

XPO's Quick Ratio for the quarter that ended in Sep. 2024 is calculated as

Quick Ratio (Q: Sep. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(1654-0)/1563
=1.06

* 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.


XPO  (NYSE:XPO) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


XPO Quick Ratio Related Terms

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


XPO Business Description

Traded in Other Exchanges
Address
Five American Lane, Greenwich, CT, USA, 06831
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 RXO spinoff, We estimate LTL shipping now makes up 60% of total revenue, with XPO's European truckload and LTL operations making up 40%. However, 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
Allison Landry director C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Mfn Partners, Lp 10 percent owner 222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
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
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
Irene Moshouris director C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Bella Loykhter Allaire director 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Farhad Nanji 10 percent owner C/O HIGHFIELDS CAPITAL MANAGEMENT LP, 200 CLARENDON STREET, BOSTON MA 02116
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 Management, Lp 10 percent owner 222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116