RXO Inc. (RXO)

Short-term

Turnover ratios

Based on the provided data for RXO Inc., we can analyze the activity ratios as follows:

1. Inventory Turnover: The inventory turnover ratio indicates how many times a company sells and replaces its inventory within a specific period. However, the data for this ratio is not available for any of the reporting periods provided.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. Unfortunately, the data for this ratio is not available for any of the reporting periods provided.

3. Payables Turnover: The payables turnover ratio evaluates how quickly a company pays its suppliers or creditors. Similar to the other activity ratios, data for payables turnover is not available for any of the periods mentioned.

4. Working Capital Turnover: The working capital turnover ratio shows how effectively a company utilizes its working capital to generate sales. RXO Inc.'s working capital turnover ratio fluctuated significantly over the reporting periods, ranging from a high of 39.90 on March 31, 2024, to a low of 2.16 on December 31, 2024. A higher turnover ratio generally indicates more efficient use of working capital to generate sales, while a lower ratio may suggest inefficiencies in the management of working capital.

In conclusion, while the working capital turnover ratio provides insights into the efficiency of RXO Inc.'s working capital management, the lack of data for inventory turnover, receivables turnover, and payables turnover limits a comprehensive analysis of the company's overall activity performance in handling its inventory, receivables, and payables.

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Average number of days

Based on the provided data for RXO Inc., we observed that the company's Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables are all presented as "— days" for the periods from December 31, 2021, to December 31, 2024.

These activity ratios are crucial for analyzing a company's operational efficiency and management of working capital. The absence of specific values for these ratios in the dataset indicates a lack of detailed information regarding RXO Inc.'s inventory turnover, accounts receivable collection period, and accounts payable payment period.

In the absence of actual numerical values for the activity ratios, a comprehensive analysis of RXO Inc.'s efficiency in managing inventory, collecting receivables, and paying payables cannot be provided. To evaluate the company's performance in these areas, it would be necessary to have access to the specific data points for the periods in question.

In conclusion, while these activity ratios play a significant role in assessing a company's operational performance and liquidity management, the data provided does not offer insight into RXO Inc.'s activity ratios for the specified time frames. Further information would be needed to conduct a detailed analysis of these crucial financial metrics.

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Long-term

The fixed asset turnover ratio for RXO Inc. has shown a gradual decline over the years, from 19.62 at the end of December 2021 to 13.79 at the end of September 2023. This indicates that the company's ability to generate sales from its fixed assets has weakened over time.

On the other hand, the total asset turnover ratio has been fluctuating, reaching a peak of 2.35 at the end of December 2022 before dropping to 1.14 at the end of September 2024. This ratio signifies the company's efficiency in utilizing all assets to generate revenue, and the significant drop in the ratio indicates a substantial decrease in asset utilization efficiency.

Overall, the long-term activity ratios suggest that RXO Inc. may be facing challenges in effectively utilizing its assets to generate sales, which could potentially impact its overall financial performance and sustainability.