RXO Inc. (RXO)

Days of sales outstanding (DSO)

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022
Receivables turnover 5.28 5.17 5.69
DSO days 69.08 70.58 64.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.28
= 69.08

To analyze RXO Inc.'s days of sales outstanding (DSO) based on the provided data, we observe a trend of changes over the past four quarters. The DSO for RXO Inc. decreased from 70.58 days as of September 30, 2023, to 69.08 days as of December 31, 2023, indicating an improvement in the time taken to collect accounts receivable. This suggests that the company was able to manage its receivables more effectively in the most recent quarter.

Comparing the DSO of 69.08 days on December 31, 2023, to earlier periods, we note that it is lower than the DSO reported on September 30, 2023, and June 30, 2023, which were 70.58 days and 64.10 days, respectively. This declining trend could signify enhanced efficiency in the collection of outstanding sales, potentially resulting from more effective credit management policies or improved payment terms with customers.

However, it is important to note that the DSO can be influenced by various factors, including industry norms, customer payment behavior, and overall economic conditions. Therefore, while a decreasing DSO generally reflects positively on liquidity and efficiency, further analysis and comparison with industry standards would provide a more comprehensive understanding of RXO Inc.'s performance in managing its accounts receivable.


Peer comparison

Dec 31, 2023