GXO Net Income vs Free Cash Flow Analysis
| GXO Stock | USD 60.47 0.47 0.78% |
GXO Logistics financial indicator trend analysis is much more than just examining GXO Logistics latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether GXO Logistics is a good investment. Please check the relationship between GXO Logistics Net Income and its Free Cash Flow accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GXO Logistics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. To learn how to invest in GXO Stock, please use our How to Invest in GXO Logistics guide.
Net Income vs Free Cash Flow
Net Income vs Free Cash Flow Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of GXO Logistics Net Income account and Free Cash Flow. At this time, the significance of the direction appears to have strong relationship.
The correlation between GXO Logistics' Net Income and Free Cash Flow is 0.71. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of GXO Logistics, assuming nothing else is changed. The correlation between historical values of GXO Logistics' Net Income and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of GXO Logistics are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Net Income i.e., GXO Logistics' Net Income and Free Cash Flow go up and down completely randomly.
Correlation Coefficient | 0.71 |
| Relationship Direction | Positive |
| Relationship Strength | Significant |
Net Income
Net income is one of the most important fundamental items in finance. It plays a large role in GXO Logistics financial statement analysis. It represents the amount of money remaining after all of GXO Logistics operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.Free Cash Flow
The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.Most indicators from GXO Logistics' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into GXO Logistics current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GXO Logistics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. To learn how to invest in GXO Stock, please use our How to Invest in GXO Logistics guide.At this time, GXO Logistics' Enterprise Value Over EBITDA is very stable compared to the past year. As of the 25th of November 2024, Enterprise Value Multiple is likely to grow to 18.70, while Tax Provision is likely to drop about 35.9 M.
| 2021 | 2022 | 2023 | 2024 (projected) | Depreciation And Amortization | 335M | 329M | 361M | 353.5M | Interest Income | 21M | 29M | 26.1M | 21.9M |
GXO Logistics fundamental ratios Correlations
Click cells to compare fundamentals
GXO Logistics Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Pair Trading with GXO Logistics
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GXO Logistics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GXO Logistics will appreciate offsetting losses from the drop in the long position's value.Moving against GXO Stock
| 0.85 | PAL | Proficient Auto Logi | PairCorr |
| 0.53 | EXPD | Expeditors International | PairCorr |
| 0.43 | PSIG | PS International | PairCorr |
| 0.33 | LSH | Lakeside Holding Upward Rally | PairCorr |
The ability to find closely correlated positions to GXO Logistics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GXO Logistics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GXO Logistics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GXO Logistics to buy it.
The correlation of GXO Logistics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GXO Logistics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GXO Logistics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GXO Logistics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GXO Logistics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. To learn how to invest in GXO Stock, please use our How to Invest in GXO Logistics guide.You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Is Air Freight & Logistics space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GXO Logistics. If investors know GXO will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GXO Logistics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.50) | Earnings Share 0.89 | Revenue Per Share 92.626 | Quarterly Revenue Growth 0.278 | Return On Assets 0.0223 |
The market value of GXO Logistics is measured differently than its book value, which is the value of GXO that is recorded on the company's balance sheet. Investors also form their own opinion of GXO Logistics' value that differs from its market value or its book value, called intrinsic value, which is GXO Logistics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GXO Logistics' market value can be influenced by many factors that don't directly affect GXO Logistics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GXO Logistics' value and its price as these two are different measures arrived at by different means. Investors typically determine if GXO Logistics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GXO Logistics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.