RXO Inc. (RXO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 35,000 | 5,000 | 98,000 | 29,000 | 70,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,065,000 | 682,000 | 839,000 | 816,000 | 629,000 |
| Quick ratio | 0.03 | 0.01 | 0.12 | 0.04 | 0.11 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($35,000K
+ $—K
+ $—K)
÷ $1,065,000K
= 0.03
The quick ratio of RXO Inc. has exhibited fluctuations over the past five years. The ratio was 0.11 as of December 31, 2020, indicating that the company had $0.11 in liquid assets available to cover each dollar of current liabilities. However, by the end of 2021, the quick ratio decreased significantly to 0.04, suggesting a lower level of liquidity to meet short-term obligations.
In 2022, there was a notable improvement in the quick ratio to 0.12, indicating that RXO Inc. had enhanced its ability to cover current liabilities with liquid assets. Subsequently, by the end of 2023, the quick ratio dropped notably to 0.01, signaling potential liquidity challenges as the company had only $0.01 in quick assets for every dollar of current liabilities.
As of December 31, 2024, the quick ratio slightly improved to 0.03 compared to the previous year but still remained at a relatively low level. Overall, the company's quick ratio has displayed volatility, indicating fluctuations in its short-term liquidity position. Continued monitoring and management of liquidity will be crucial for RXO Inc. to ensure its ability to meet short-term financial obligations.
Peer comparison
Dec 31, 2024