RXO Inc. (RXO)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,000 | 104,000 | 124,000 | 121,000 | 98,000 | 187,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — |
| Receivables | US$ in thousands | 743,000 | 787,000 | 743,000 | 862,000 | 900,000 | 1,012,000 |
| Total current liabilities | US$ in thousands | 682,000 | 728,000 | 699,000 | 820,000 | 823,000 | 888,000 |
| Quick ratio | 1.10 | 1.22 | 1.24 | 1.20 | 1.21 | 1.35 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,000K
+ $—K
+ $743,000K)
÷ $682,000K
= 1.10
The Quick Ratio, also known as the Acid-Test Ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A Quick Ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
Based on the data provided, RXO Inc.'s Quick Ratio has been fluctuating over the past six quarters, ranging from 1.10 to 1.35.
In the most recent quarter, as of December 31, 2023, RXO Inc. had a Quick Ratio of 1.10, which means that for every dollar of current liabilities, the company had $1.10 of quick assets available to cover those obligations. This may suggest a slightly lower liquidity position compared to the previous quarter.
Overall, RXO Inc.'s Quick Ratio has shown some volatility, but has generally remained above 1 in the recent quarters, indicating a relatively healthy liquidity position. However, it would be beneficial for the company to monitor and manage its quick assets and current liabilities to ensure continued financial stability and the ability to meet short-term obligations efficiently.
Peer comparison
Dec 31, 2023