RXO Inc. (RXO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 35 | 55,000 | 7,000 | 7,000 | 5,000 | 104,000 | 124,000 | 121,000 | 98,000 | 187,000 | 212,000 | 46,000 | 29,000 |
| Short-term investments | US$ in thousands | — | 54,945 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.03 | 0.12 | 0.01 | 0.01 | 0.01 | 0.14 | 0.18 | 0.15 | 0.12 | 0.21 | 0.22 | 0.04 | 0.04 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($35K
+ $—K)
÷ $1,066K
= 0.03
The cash ratio of RXO Inc. provides insight into the company's ability to cover its short-term liabilities with its cash and cash equivalents. The trend of the cash ratio shows fluctuations over the reported periods. At the end of December 31, 2021, and March 31, 2022, the cash ratio remained low at 0.04, indicating that the company had limited cash reserves relative to its current liabilities.
However, a significant improvement was observed in the following quarters, with the cash ratio increasing to 0.22 at June 30, 2022, and 0.21 at September 30, 2022. This improvement suggests that RXO Inc. had increased its cash holdings compared to its short-term obligations during this period.
Subsequently, the cash ratio experienced some fluctuations between December 31, 2022, and September 30, 2023, ranging from 0.12 to 0.18. This variability indicates potential changes in the company's cash position and short-term liabilities during these quarters.
Towards the end of 2023 and the beginning of 2024, the cash ratio dropped significantly to 0.01, signaling a decrease in the ability of RXO Inc. to cover its short-term liabilities with available cash. However, by June 30, 2024, the cash ratio increased to 0.12, suggesting a partial recovery in the company's cash reserves relative to its short-term obligations.
Overall, the analysis of RXO Inc.'s cash ratio indicates fluctuations in the company's liquidity position and highlights the importance of monitoring cash levels to ensure the company can meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2024