RXO Inc. (RXO)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 4,000 | -6,000 | 12,000 |
| Revenue (ttm) | US$ in thousands | 3,926,000 | 4,070,000 | 4,231,000 |
| Pretax margin | 0.10% | -0.15% | 0.28% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $4,000K ÷ $3,926,000K
= 0.10%
To analyze RXO Inc.'s pretax margin over the past three quarters, we observe significant fluctuations. In December 2023, the company recorded a pretax margin of 0.10%, indicating that for every dollar of revenue generated, 0.10 cents were attributable to pre-tax profit. This suggests a slight profitability, albeit at a minimal level.
Moving back to September 2023, the pretax margin was -0.15%, which is a negative figure implying that the company incurred losses before taxes were taken into account. This could raise concerns about the company's ability to cover its expenses and generate profits.
However, there was a notable improvement in the pretax margin in June 2023, reaching 0.28%. This indicates a better operational efficiency compared to the previous quarters, as the company managed to increase profitability before taxes.
Overall, the fluctuating pretax margins of RXO Inc. suggest inconsistent financial performance and a need for further analysis to understand the underlying factors influencing these fluctuations.
Peer comparison
Dec 31, 2023