Debt-to-Equity Ratio

The debt-to-equity ratio measures how much debt a company uses relative to its shareholders’ equity — a higher ratio means more leverage.

XPO's current ratio of 1.77x is well above the Industrials sector median of 0.63x, placing it in the 83rd percentile among peers, indicating the company carries more debt than most in its sector. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 18.8%, from 2.18x to 1.77x, meaning XPO reduced its leverage in the most recent quarter. A high debt-to-equity combined with a decreasing trend suggests the company is still highly leveraged but is actively deleveraging, which lowers immediate financial risk while not eliminating it entirely. This mixed picture — elevated relative to peers but improving — neither strongly reinforces nor contradicts the overall NEUTRAL verdict, as the high level keeps the stock risky while the trend provides a potential positive signal.

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