RXO Inc. (RXO)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 39,000 | 24,000 | 33,000 |
| Revenue (ttm) | US$ in thousands | 3,926,000 | 4,070,000 | 4,231,000 |
| Operating profit margin | 0.99% | 0.59% | 0.78% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $39,000K ÷ $3,926,000K
= 0.99%
The operating profit margin of RXO Inc. has shown fluctuations over the past three quarters. In the most recent quarter ending on December 31, 2023, the operating profit margin improved to 0.99%. This indicates that for every dollar of revenue generated, the company was able to retain $0.99 as operating profit after accounting for variable costs.
The operating profit margin was lower in the previous quarters, with 0.59% in September 30, 2023, and 0.78% in June 30, 2023. This suggests that the company's profitability was lower during those periods compared to the latest quarter.
It is important for RXO Inc. to monitor its operating profit margin continuously to ensure efficient cost management and sustainable profitability levels. Further analysis of the company's operating expenses and revenue generation strategies may be required to identify factors influencing these fluctuations in operating profit margin.
Peer comparison
Dec 31, 2023