RXO Inc. (RXO)
Number of days of payables
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|
| Payables turnover | 8.66 | 8.26 | 8.85 | ||||
| Number of days of payables | days | 42.15 | 44.19 | 41.22 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.66
= 42.15
Based on the data provided, we can observe the trend in the number of days of payables for RXO Inc. over the last few quarters. The number of days of payables indicates the average number of days it takes for the company to pay its suppliers or vendors.
The trend in RXO Inc.'s number of days of payables shows some fluctuations over the past three quarters. In December 2022, the company took 42.15 days on average to pay its payables, which increased to 44.19 days by March 2023, and then decreased to 41.22 days by June 2023.
The decrease in the number of days of payables from March to June 2023 could suggest that RXO Inc. has improved its efficiency in managing its payables by paying its suppliers more promptly. However, it is essential to monitor this trend over the coming quarters to ascertain if this improvement is sustainable or merely a short-term fluctuation.
Overall, understanding the number of days of payables provides insights into the company's liquidity management and relationships with its suppliers, which are crucial factors in assessing the financial health and operational efficiency of RXO Inc.
Peer comparison
Dec 31, 2023