RXO Inc. (RXO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Based on the data provided, RXO Inc. has maintained a cash conversion cycle of 0.00 days consistently throughout the period from December 31, 2021, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales to customers.
With a cash conversion cycle of 0.00 days, it indicates that RXO Inc. is able to efficiently manage its working capital components, including inventory management, accounts payable, and accounts receivable, resulting in a swift turnaround from investment in resources to cash receipt from sales. This efficiency suggests that the company is effectively optimizing its operations to maintain liquidity and maximize its cash flows. A low or zero cash conversion cycle is generally considered favorable as it signals effective management of working capital and a strong financial position.
Peer comparison
Dec 31, 2024