RXO Inc. (RXO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 35,000 | 5,000 | 98,000 | 29,000 | 70,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,065,000 | 682,000 | 839,000 | 816,000 | 629,000 |
| Cash ratio | 0.03 | 0.01 | 0.12 | 0.04 | 0.11 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($35,000K
+ $—K)
÷ $1,065,000K
= 0.03
The cash ratio of RXO Inc. has fluctuated over the years. As of December 31, 2020, the company had a cash ratio of 0.11, indicating that it had $0.11 in cash and cash equivalents for every $1 of current liabilities. This suggests a relatively healthy liquidity position at that time.
Subsequently, the cash ratio decreased significantly to 0.04 by December 31, 2021, and remained low at 0.01 by December 31, 2023. A low cash ratio may indicate potential liquidity challenges or inefficiencies in managing cash flow during these periods.
However, the cash ratio improved to 0.12 by December 31, 2022, and slightly increased to 0.03 by December 31, 2024. While the ratio has shown some recovery in the later years, it is still relatively low compared to the baseline in 2020.
Overall, RXO Inc. should closely monitor and manage its cash position to ensure sufficient liquidity to meet its short-term obligations and operational needs, especially during periods when the cash ratio is below the industry average. Continual assessment of cash management practices and working capital efficiency will be crucial for the company's financial health and stability.
Peer comparison
Dec 31, 2024