RXO Inc. (RXO)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,884,667 | 3,861,000 | 3,797,000 | 3,830,000 | 3,927,000 | 4,069,000 | 4,231,000 | 4,494,000 | 4,796,000 | 5,003,000 | 5,063,000 | 4,936,000 | 4,689,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 295,000 | 280,000 | 269,000 | 278,000 | 281,000 | 284,000 | 248,000 | 239,000 |
| Fixed asset turnover | — | — | — | — | — | 13.79 | 15.11 | 16.71 | 17.25 | 17.80 | 17.83 | 19.90 | 19.62 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,884,667K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. RXO Inc.'s fixed asset turnover ratio has shown a declining trend over the periods provided in the data.
At the end of December 31, 2021, the fixed asset turnover stood at a high of 19.62, indicating that for every dollar of fixed assets, the company generated $19.62 in sales revenue. However, this ratio decreased slightly to 19.90 by March 31, 2022.
Subsequently, there was a more notable decline in the ratio, dropping to 17.83 by June 30, 2022, and further to 17.80 by September 30, 2022. The trend continued with a decreasing ratio of 17.25 by December 31, 2022, and a steeper decline to 16.71 by March 31, 2023.
The fixed asset turnover ratio continued its downward trajectory over the subsequent periods, reaching 15.11 by June 30, 2023, and further dropping to 13.79 by September 30, 2023. For the last dates provided in the data (December 31, 2023, and onwards), the values for the fixed asset turnover ratio are not available.
Overall, the declining trend in RXO Inc.'s fixed asset turnover ratio suggests a potential inefficiency in utilizing its fixed assets to generate revenue. Further analysis and investigation would be necessary to understand the reasons behind this trend and to identify potential areas of improvement for the company.
Peer comparison
Dec 31, 2024