RXO Inc. (RXO)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,585,000 | 3,700,000 | 3,825,000 | |||
| Payables | US$ in thousands | 414,000 | 448,000 | 432,000 | 496,000 | 501,000 | 547,000 |
| Payables turnover | 8.66 | 8.26 | 8.85 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,585,000K ÷ $414,000K
= 8.66
The payables turnover for RXO Inc. has been relatively stable over the past few quarters, ranging from 8.26 to 8.85. This ratio indicates that the company is able to efficiently manage its accounts payable by paying off its suppliers multiple times throughout the year. A higher payables turnover ratio typically suggests that the company is effectively utilizing its suppliers' credit terms to support its operations. Therefore, RXO Inc. appears to have a healthy relationship with its suppliers and is able to maintain a good balance between managing its payables and optimizing its cash flow.
Peer comparison
Dec 31, 2023