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XPO Logistics (XPAR:XPO) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Dec. 2020)


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What is XPO Logistics Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. XPO Logistics's annualized net income for the quarter that ended in Dec. 2020 was €129 Mil. XPO Logistics's average shareholder tangible equity for the quarter that ended in Dec. 2020 was €-292 Mil. Therefore, XPO Logistics's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2020 was Negative Tangible Equity%.

The historical rank and industry rank for XPO Logistics's Return-on-Tangible-Equity or its related term are showing as below:

XPAR:XPO's Return-on-Tangible-Equity is not ranked *
in the Transportation industry.
Industry Median: 9.64
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

XPO Logistics Return-on-Tangible-Equity Historical Data

The historical data trend for XPO Logistics's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart

XPO Logistics Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

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
Return-on-Tangible-Equity 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 Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity - Negative Tangible Equity

Competitive Comparison of XPO Logistics's Return-on-Tangible-Equity

For the Integrated Freight & Logistics subindustry, XPO Logistics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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's Return-on-Tangible-Equity Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, XPO Logistics's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where XPO Logistics's Return-on-Tangible-Equity falls into.



XPO Logistics Return-on-Tangible-Equity Calculation

XPO Logistics's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2020 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2020 )  (A: Dec. 2019 )(A: Dec. 2020 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2020 )  (A: Dec. 2019 )(A: Dec. 2020 )
=46.112/( (-300.153+-263.369 )/ 2 )
=46.112/-281.761
=Negative Tangible Equity %

XPO Logistics's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2020 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2020 )  (Q: Jun. 2020 )(Q: Dec. 2020 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2020 )  (Q: Jun. 2020 )(Q: Dec. 2020 )
=129.422/( (-319.867+-263.369)/ 2 )
=129.422/-291.618
=Negative Tangible Equity %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Dec. 2020) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


XPO Logistics  (XPAR:XPO) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


XPO Logistics Return-on-Tangible-Equity Related Terms

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


XPO Logistics (XPAR:XPO) Business Description

Traded in Other Exchanges
N/A
Address
192 Avenue Thiers, Cedex 6, Lyon, FRA, 69457
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.