RXO Inc. (RXO)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,926,000 | 4,070,000 | 4,231,000 | |||
| Property, plant and equipment | US$ in thousands | 124,000 | 122,000 | 116,000 | 117,000 | 119,000 | 119,000 |
| Fixed asset turnover | 31.66 | 33.36 | 36.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,926,000K ÷ $124,000K
= 31.66
The fixed asset turnover ratio for RXO Inc. has been consistently increasing over the past quarters, indicating that the company is generating higher sales relative to its investment in fixed assets. This trend signifies improved efficiency in utilizing fixed assets to generate revenue. The latest ratio of 36.47 as of December 31, 2023, reflects that the company generated approximately $36.47 in sales for every dollar invested in fixed assets. This suggests that RXO Inc. is effectively utilizing its fixed assets to drive sales growth and maximize operational performance. Overall, the increasing trend in fixed asset turnover indicates positive operational efficiency and robust asset utilization within the company.
Peer comparison
Dec 31, 2023