RXO Inc. (RXO)
Total 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 | |||
| Total assets | US$ in thousands | 1,825,000 | 1,946,000 | 1,912,000 | 2,018,000 | 2,031,000 | 2,237,000 |
| Total asset turnover | 2.15 | 2.09 | 2.21 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $3,926,000K ÷ $1,825,000K
= 2.15
The total asset turnover ratio for RXO Inc. has exhibited fluctuations over the past six quarters, ranging from 2.09 to 2.21. This ratio indicates how efficiently the company is utilizing its assets to generate revenue.
The trend shows that, on average, for every dollar of assets held by the company, it generated between $2.09 and $2.21 of revenue over the past year. The increase in the ratio from 2.09 to 2.21 in Jun 30, 2023, could suggest improved asset utilization efficiency during that quarter.
However, it is essential to further investigate the reasons behind these fluctuations in total asset turnover to understand the underlying factors affecting the company's operational efficiency and profitability. A higher total asset turnover ratio generally reflects better efficiency and productivity in utilizing assets, but a declining trend may warrant closer scrutiny to identify areas for improvement.
Peer comparison
Dec 31, 2023