RXO Inc. (RXO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 16.61 | 34.45 | 24.22 | 17.56 | 14.41 |
Based on the provided data for RXO Inc.'s activity ratios, we can assess the efficiency of the company's operations over the years:
1. Inventory Turnover: The inventory turnover ratio for RXO Inc. is not available (indicated as "—") for all the years from 2020 to 2024. This could suggest that there is no data provided regarding how many times the company's inventory was sold and replaced during those periods.
2. Receivables Turnover: Similar to the inventory turnover, the receivables turnover ratio is not provided (indicated as "—") for the years 2020 to 2024. This lack of data makes it challenging to evaluate how efficiently RXO Inc. is managing its accounts receivable collections.
3. Payables Turnover: The payables turnover ratio is also not disclosed (indicated as "—") for the years 2020 to 2024. This ratio would typically indicate how quickly the company is paying its suppliers, but without data, it is not possible to assess RXO Inc.'s payables turnover efficiency.
4. Working Capital Turnover: The working capital turnover ratio is available for RXO Inc. and shows varying values over the years. The values are 14.41 in 2020, 17.56 in 2021, 24.22 in 2022, 34.45 in 2023, and 16.61 in 2024. This ratio measures how efficiently the company is using its working capital to generate sales. The increasing trend from 2020 to 2023 indicates improved efficiency in utilizing working capital to generate revenue, although there is a slight decrease in 2024.
Overall, while the working capital turnover ratio provides some insights into RXO Inc.'s operational efficiency, the lack of data for inventory turnover, receivables turnover, and payables turnover limits the comprehensive analysis of the company's activity ratios. Further information regarding these ratios would be necessary to gain a complete understanding of RXO Inc.'s operational performance and efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the data provided, we observe that RXO Inc. has not provided specific information on its Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables for the years ending December 31, 2020 through December 31, 2024. It is essential for investors and stakeholders to have access to this information to evaluate the efficiency and effectiveness of RXO Inc.'s operations, as these activity ratios provide insights into the company's inventory management, accounts receivable collection, and accounts payable processes.
Without the specific values for these activity ratios, we are unable to assess how quickly RXO Inc. is managing its inventory, collecting its receivables, and paying its creditors. Low DOH and DSO ratios are generally favorable, indicating efficient operations, while a higher number of days of payables could suggest favorable working capital management by extending payment terms with suppliers.
In conclusion, the absence of data on RXO Inc.'s activity ratios for the specified years limits our ability to conduct a comprehensive analysis of its operational efficiency and financial performance in terms of inventory turnover, accounts receivable management, and accounts payable practices. Stakeholders would benefit from detailed disclosures in future financial reports to better understand the company's working capital cycle and overall liquidity management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 17.25 | 19.62 | 14.22 |
| Total asset turnover | 1.33 | 2.15 | 2.35 | 2.27 | 1.80 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.
For RXO Inc., the fixed asset turnover ratio has shown a positive trend over the years, increasing from 14.22 in 2020 to 17.25 in 2022. This implies that the company has been able to generate more sales relative to its investment in fixed assets during this period. However, the ratio is not available for 2023 and 2024 in the provided data.
Total asset turnover, on the other hand, measures how well a company is using all its assets to generate revenue. A higher total asset turnover ratio indicates efficient asset utilization.
In the case of RXO Inc., the total asset turnover ratio increased from 1.80 in 2020 to 2.35 in 2022 before decreasing to 1.33 in 2024. This suggests that the company was able to generate more revenue for each dollar of assets in 2022 compared to 2020, but the ratio dropped in 2024, indicating a potential decline in asset efficiency.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for RXO Inc. shows an initial improvement in asset utilization efficiency but with a subsequent decrease in the total asset turnover ratio in the latest available data. Further analysis would be needed to understand the factors driving these changes and their implications for the company's long-term operational performance.