RXO Inc. (RXO)
Receivables 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 | |||
| Receivables | US$ in thousands | 743,000 | 787,000 | 743,000 | 862,000 | 900,000 | 1,012,000 |
| Receivables turnover | 5.28 | 5.17 | 5.69 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,926,000K ÷ $743,000K
= 5.28
The receivables turnover of RXO Inc. has been fairly consistent over the past few quarters, ranging between 5.17 and 5.69 times. This indicates that, on average, the company collects its accounts receivable approximately 5 times a year. A higher receivables turnover ratio generally suggests that the company is efficient in collecting outstanding dues from customers. However, it is important to note that a very high turnover ratio might indicate overly strict credit policies leading to potentially lost sales. Overall, the stability of the receivables turnover ratio suggests that RXO Inc. has been effectively managing its accounts receivable collection process.
Peer comparison
Dec 31, 2023