Expeditors International of Washington, Inc. (EXPD) Bundle
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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