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GXO (GXO Logistics) ROE % : 4.39% (As of Sep. 2024)


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What is GXO Logistics ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GXO Logistics's annualized net income for the quarter that ended in Sep. 2024 was $132 Mil. GXO Logistics's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $3,004 Mil. Therefore, GXO Logistics's annualized ROE % for the quarter that ended in Sep. 2024 was 4.39%.

The historical rank and industry rank for GXO Logistics's ROE % or its related term are showing as below:

GXO' s ROE % Range Over the Past 10 Years
Min: -1.15   Med: 5.91   Max: 8.24
Current: 3.67

During the past 6 years, GXO Logistics's highest ROE % was 8.24%. The lowest was -1.15%. And the median was 5.91%.

GXO's ROE % is ranked worse than
73.02% of 949 companies
in the Transportation industry
Industry Median: 8.93 vs GXO: 3.67

GXO Logistics ROE % Historical Data

The historical data trend for GXO Logistics's ROE % 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.

GXO Logistics ROE % Chart

GXO Logistics Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial 2.34 -1.15 5.91 7.89 8.24

GXO Logistics Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % 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 9.49 10.25 -5.12 5.27 4.39

Competitive Comparison of GXO Logistics's ROE %

For the Integrated Freight & Logistics subindustry, GXO Logistics's ROE %, along with its competitors' market caps and ROE % 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.


GXO Logistics's ROE % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, GXO Logistics's ROE % distribution charts can be found below:

* The bar in red indicates where GXO Logistics's ROE % falls into.



GXO Logistics ROE % Calculation

GXO Logistics's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=229/( (2645+2912)/ 2 )
=229/2778.5
=8.24 %

GXO Logistics's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=132/( (2901+3106)/ 2 )
=132/3003.5
=4.39 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


GXO Logistics  (NYSE:GXO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=132/3003.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(132 / 12628)*(12628 / 11630)*(11630 / 3003.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.05 %*1.0858*3.8721
=ROA %*Equity Multiplier
=1.14 %*3.8721
=4.39 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=132/3003.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (132 / 168) * (168 / 440) * (440 / 12628) * (12628 / 11630) * (11630 / 3003.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7857 * 0.3818 * 3.48 % * 1.0858 * 3.8721
=4.39 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


GXO Logistics ROE % Related Terms

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


GXO Logistics Business Description

Traded in Other Exchanges
Address
Two American Lane, Greenwich, CT, USA, 06831
GXO Logistics Inc is a contract logistics company. Its revenue is diversified across numerous verticals and customers, including many multinational corporations. It provides warehousing and distribution, order fulfillment, e-commerce, reverse logistics, and other supply chain services differentiated by its ability to deliver technology-enabled, customized solutions at scale. Geographically, it generates revenue from the United Kingdom, the United States, the Netherlands, France, Spain, Italy, and other countries, and derives the majority of its revenue from the United Kingdom.
Executives
Malcolm Wilson director, officer: Chief Executive Officer TWO AMERICAN LANE, GREENWICH CT 06831
Gena L Ashe director C/O GXO LOGISTICS, INC., TWO AMERICAN LANE, GREENWICH CT 06831
Matthew J. Fassler director TWO AMERICAN LANE, GREENWICH CT 06831
S Jacobs Bradley director C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Jacobs Private Equity, Llc director, 10 percent owner 350 ROUND HILL ROAD, GREENWICH CT 06831
Karlis Kirsis officer: Chief Legal Officer TWO AMERICAN LANE, GREENWICH CT 06831
Elizabeth Fogarty officer: Chief Communications Officer TWO AMERICAN LANE, GREENWICH CT 06831
Jason D Papastavrou director C/O GXO LOGISTICS, INC., TWO AMERICAN LANE, GREENWICH CT 06831
Oren Shaffer director C/O GXO LOGISTICS, INC., TWO AMERICAN LANE, GREENWICH CT 06831
Marlene M Colucci director C/O GXO LOGISTICS, INC., TWO AMERICAN LANE, GREENWICH CT 06831
Maryclaire Hammond officer: Chief Human Resources Officer TWO AMERICAN LANE, GREENWICH CT 06831
Joli L. Gross director TWO AMERICAN LANE, GREENWICH CT 06831
Paul Blanchett officer: Chief Accounting Officer TWO AMERICAN LANE, GREENWICH CT 06831
Clare Chatfield director TWO AMERICAN LANE, GREENWICH CT 06831
Xpo Logistics, Inc. 10 percent owner FIVE AMERICAN LANE, GREENWICH CT 06831