RXO Inc. (RXO)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -304,000 | 4,000 | 119,000 | 191,000 | 57,000 |
| Revenue | US$ in thousands | 4,550,000 | 3,927,000 | 4,796,000 | 4,689,000 | 3,357,000 |
| Pretax margin | -6.68% | 0.10% | 2.48% | 4.07% | 1.70% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-304,000K ÷ $4,550,000K
= -6.68%
The pretax margin of RXO Inc., a key indicator of operational efficiency and profitability before accounting for taxes, has exhibited fluctuations over the years. In 2020, the company's pretax margin stood at 1.70%, indicating that the company generated $0.017 in pretax profit for every dollar of revenue.
Subsequently, the pretax margin increased to 4.07% by December 31, 2021, signaling improved profitability and potentially more effective cost management. However, in 2022, the pretax margin declined to 2.48%, suggesting a slight decrease in profitability compared to the previous year.
By December 31, 2023, the pretax margin dropped significantly to 0.10%, reflecting potential challenges or inefficiencies impacting the company's ability to generate profit before taxes. Furthermore, in 2024, the pretax margin registered a negative figure of -6.68%, indicating that the company experienced a loss before accounting for taxes.
Overall, the fluctuations in RXO Inc.'s pretax margin highlight varying levels of profitability and efficiency in operations over the analyzed period, potentially requiring further investigation into the underlying factors influencing the company's financial performance.
Peer comparison
Dec 31, 2024