RXO Inc. (RXO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -56,000 | 39,000 | 123,000 | 192,000 | 80,000 |
| Revenue | US$ in thousands | 4,550,000 | 3,927,000 | 4,796,000 | 4,689,000 | 3,357,000 |
| Operating profit margin | -1.23% | 0.99% | 2.56% | 4.09% | 2.38% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-56,000K ÷ $4,550,000K
= -1.23%
The operating profit margin of RXO Inc. has varied over the years based on the data provided. In December 31, 2020, the operating profit margin stood at 2.38%, indicating that the company was generating $0.0238 in operating profit for every dollar of sales. This ratio improved to 4.09% by December 31, 2021, showing increased efficiency in controlling operating expenses and generating profits.
However, in December 31, 2022, the operating profit margin decreased to 2.56%, signaling a slight decline in profitability compared to the previous year. The trend continued in December 31, 2023, with the operating profit margin decreasing further to 0.99%, potentially indicating challenges in managing operating costs or lower sales volume impacting profitability.
By December 31, 2024, the operating profit margin turned negative at -1.23%, suggesting that RXO Inc. incurred operating losses relative to revenue generated during that period. This negative margin could be a concerning sign for stakeholders, indicating a need for strategic interventions to improve operational efficiency and profitability.
In summary, the operating profit margin of RXO Inc. has shown fluctuations over the years, with improvements in some periods but declines and even negative margins in others, highlighting the importance of closely monitoring and managing operational performance to ensure sustainable profitability.
Peer comparison
Dec 31, 2024