RXO Inc. (RXO)

Cash ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022
Cash and cash equivalents US$ in thousands 5,000 104,000 124,000 121,000 98,000 187,000
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 682,000 728,000 699,000 820,000 823,000 888,000
Cash ratio 0.01 0.14 0.18 0.15 0.12 0.21

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,000K + $—K) ÷ $682,000K
= 0.01

The cash ratio measures a company's ability to pay off its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

Analyzing RXO Inc.'s cash ratio over the past six quarters, we observed fluctuations in the ratio. As of Dec 31, 2023, the cash ratio was at 0.01, indicating that the company had only 1 cent of cash and cash equivalents for every dollar of current liabilities. This low ratio suggests a potential liquidity risk, as the company may struggle to meet its short-term obligations using its available cash resources.

However, looking back at Sep 30, 2023, the cash ratio significantly improved to 0.14, indicating a notable increase in liquidity compared to the most recent quarter. This improvement suggests that RXO Inc. enhanced its cash position relative to its current liabilities, which could have been driven by increased cash reserves or reduced current liabilities during that period.

Further back, in Sep 30, 2022, the company had a cash ratio of 0.21, signifying a relatively strong liquidity position at that point in time. This indicated that the company had 21 cents of cash and cash equivalents for every dollar of current liabilities, showcasing a healthy liquidity cushion.

In conclusion, RXO Inc.'s cash ratio has shown fluctuations over the past six quarters, indicating varying levels of liquidity. The company should aim to maintain a healthy cash ratio to ensure it can meet its short-term obligations efficiently and avoid liquidity challenges.


Peer comparison

Dec 31, 2023