RXO Inc. (RXO)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 796,000 | 936,000 | 916,000 | 1,029,000 | 1,029,000 | 1,225,000 |
| Total current liabilities | US$ in thousands | 682,000 | 728,000 | 699,000 | 820,000 | 823,000 | 888,000 |
| Current ratio | 1.17 | 1.29 | 1.31 | 1.25 | 1.25 | 1.38 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $796,000K ÷ $682,000K
= 1.17
The current ratio of RXO Inc. has shown some fluctuations over the past six quarters, ranging from a low of 1.17 in December 2023 to a high of 1.38 in September 2022. A current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A ratio of 1 or higher typically indicates that a company can meet its short-term obligations.
In this case, the current ratio has generally remained above 1, signaling that RXO Inc. has had sufficient current assets to cover its current liabilities throughout the period. A higher current ratio suggests a stronger liquidity position, providing a buffer against financial difficulties.
The slight fluctuations in the current ratio over time may indicate changes in the company's liquidity position, potentially influenced by factors such as variations in current assets and liabilities. It is essential for stakeholders to monitor these trends to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023