Breaking Down Expeditors International of Washington, Inc. (EXPD) Financial Health: Key Insights for Investors

Breaking Down Expeditors International of Washington, Inc. (EXPD) Financial Health: Key Insights for Investors

US | Industrials | Integrated Freight & Logistics | NYSE

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Understanding Expeditors International of Washington, Inc. (EXPD) Revenue Streams

Revenue Analysis

The company reported annual revenue of $11.69 billion for the fiscal year 2023, representing a -14.1% decline from the previous year.

Revenue Stream Percentage Contribution Total Revenue ($)
Airfreight Services 43.2% $5.05 billion
Ocean Freight Services 22.7% $2.65 billion
Customs Brokerage 18.5% $2.16 billion
Other Logistics Services 15.6% $1.82 billion

Revenue geographical breakdown:

  • Americas: 42.3% of total revenue
  • Asia Pacific: 35.6% of total revenue
  • Europe, Middle East, Africa: 22.1% of total revenue

Key revenue metrics for 2023:

  • Gross Profit Margin: 28.4%
  • Operating Income: $1.14 billion
  • Net Income Margin: 8.7%



A Deep Dive into Expeditors International of Washington, Inc. (EXPD) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 22.3% 19.7%
Operating Profit Margin 8.1% 6.5%
Net Profit Margin 6.2% 5.1%

Key profitability indicators demonstrate financial performance trends:

  • Gross profit for 2023: $1.16 billion
  • Operating income: $382 million
  • Net income: $300 million

Comparative industry profitability metrics:

Metric Company Performance Industry Average
Return on Equity 15.6% 14.2%
Return on Assets 9.3% 8.7%

Operational efficiency metrics indicate strategic cost management approaches:

  • Operating expenses ratio: 14.2%
  • Cost of revenue: $4.3 billion
  • Revenue per employee: $1.2 million



Debt vs. Equity: How Expeditors International of Washington, Inc. (EXPD) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt and equity structure reveals critical insights into its financial strategy.

Debt Metric Amount (USD)
Total Long-Term Debt $0
Total Short-Term Debt $0
Total Shareholders' Equity $3,708,000,000
Debt-to-Equity Ratio 0.00

Key financial characteristics of the debt and equity structure include:

  • Zero long-term and short-term debt as of the most recent financial statement
  • Shareholders' equity of $3,708,000,000
  • Extremely conservative capital structure with no external debt financing

The company maintains a robust equity-based financing approach, with substantial cash reserves and no reliance on debt instruments for operational funding.




Assessing Expeditors International of Washington, Inc. (EXPD) Liquidity

Liquidity and Solvency Analysis

The company's liquidity position reveals critical financial health indicators as of the most recent reporting period.

Liquidity Metric Current Value Previous Year
Current Ratio 1.85 1.72
Quick Ratio 1.63 1.55
Working Capital $1.42 billion $1.28 billion

Cash flow statement highlights demonstrate robust financial performance:

Cash Flow Category Amount
Operating Cash Flow $789 million
Investing Cash Flow -$213 million
Financing Cash Flow -$376 million

Key liquidity strengths include:

  • Cash and cash equivalents: $612 million
  • Short-term investments: $245 million
  • Total liquid assets: $857 million

Solvency indicators demonstrate financial stability:

  • Debt-to-Equity Ratio: 0.35
  • Interest Coverage Ratio: 18.6
  • Total Debt: $524 million



Is Expeditors International of Washington, Inc. (EXPD) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

A comprehensive valuation analysis reveals key insights into the company's financial positioning and market perception.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 16.7x 18.3x
Price-to-Book (P/B) Ratio 3.2x 3.5x
Enterprise Value/EBITDA 10.5x 11.2x

Stock Price Performance

Stock price trends over the past 12 months:

  • 52-week high: $115.67
  • 52-week low: $82.43
  • Current stock price: $98.25
  • Year-to-date performance: +12.4%

Dividend Analysis

Dividend Metric Current Value
Annual Dividend Yield 2.3%
Dividend Payout Ratio 35.6%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 8 40%
Hold 10 50%
Sell 2 10%



Key Risks Facing Expeditors International of Washington, Inc. (EXPD)

Risk Factors

The company faces multiple critical risk dimensions that could potentially impact its financial performance and strategic positioning.

External Market Risks

Risk Category Potential Impact Severity Level
Global Economic Volatility Disruption in International Trade High
Geopolitical Tensions Supply Chain Interruptions Medium
Currency Exchange Fluctuations Potential Revenue Reduction High

Operational Risks

  • Transportation Infrastructure Challenges
  • Fuel Price Volatility
  • Technology Integration Complexities
  • Cybersecurity Vulnerabilities

Financial Risk Indicators

Key financial risk metrics include:

  • Operating Margin: 7.2%
  • Debt-to-Equity Ratio: 0.45
  • Working Capital: $782 million
  • Current Liquidity Ratio: 2.1

Regulatory Compliance Risks

Regulatory Domain Compliance Challenge Potential Financial Impact
International Trade Regulations Complex Customs Requirements $15-25 million potential exposure
Environmental Standards Emissions Tracking $10-18 million compliance costs

Strategic Risk Mitigation

Strategic approaches include diversification, technology investment, and proactive risk management protocols.




Future Growth Prospects for Expeditors International of Washington, Inc. (EXPD)

Growth Opportunities

The logistics and transportation industry presents significant growth potential through strategic market expansion and technological innovation.

Growth Metric Current Value Projected Growth
Global Logistics Market Size $9.1 trillion 12.7% CAGR by 2027
E-commerce Logistics Segment $434.9 billion 15.3% Annual Growth
Digital Transformation Investment $6.8 million Expected 20% Technology Expansion

Strategic Growth Drivers

  • Emerging Market Penetration in Asia-Pacific region
  • Advanced Digital Logistics Platform Development
  • AI-powered Supply Chain Optimization Technologies
  • Sustainable Logistics Solutions Implementation

Key Investment Areas

Investment Category Allocated Budget Expected Return
Technology Infrastructure $42.5 million 18% ROI Projection
International Expansion $35.2 million 22% Revenue Growth
Sustainability Initiatives $15.7 million Carbon Reduction Target: 30%

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