RXO Inc. (RXO)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,884,667 | 3,861,000 | 3,797,000 | 3,830,000 | 3,927,000 | 4,069,000 | 4,231,000 | 4,494,000 | 4,796,000 | 5,003,000 | 5,063,000 | 4,936,000 | 4,689,000 |
| Total current assets | US$ in thousands | 1,339,000 | 1,255,000 | 776,000 | 770,000 | 796,000 | 936,000 | 916,000 | 1,029,000 | 1,037,000 | 1,225,000 | 1,351,000 | 1,306,000 | 1,083,000 |
| Total current liabilities | US$ in thousands | 1,066 | 947,000 | 662,000 | 674,000 | 682,000 | 728,000 | 699,000 | 820,000 | 839,000 | 888,000 | 957,000 | 1,063,000 | 816,000 |
| Working capital turnover | 2.16 | 12.54 | 33.31 | 39.90 | 34.45 | 19.56 | 19.50 | 21.50 | 24.22 | 14.85 | 12.85 | 20.31 | 17.56 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,884,667K ÷ ($1,339,000K – $1,066K)
= 2.16
RXO Inc.'s working capital turnover has exhibited fluctuations over the period from December 31, 2021, to December 31, 2024. The metric started at 17.56 on December 31, 2021, indicating that the company turned over its working capital approximately 17.56 times during that year.
Throughout the following periods, the working capital turnover ratio varied, reaching a peak of 39.90 on March 31, 2024. This suggests that during that quarter, RXO Inc. efficiently utilized its working capital to generate sales revenue.
However, the ratio decreased significantly to 2.16 by December 31, 2024, signifying a notable decline in the efficiency of the company's working capital management by the end of the period. This reduced ratio may indicate that RXO Inc. was unable to effectively convert its working capital into sales revenue during the last quarter of 2024.
Overall, the trend in RXO Inc.'s working capital turnover suggests mixed performance in efficiently utilizing its working capital over the analyzed period, with periods of strong efficiency followed by notable declines.
Peer comparison
Dec 31, 2024