RXO Inc. (RXO)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -271,033 | -267,000 | -28,000 | -14,000 | 4,000 | -6,000 | 12,000 | 65,000 | 119,000 | 180,000 | 203,000 | 192,000 | 191,000 |
| Revenue (ttm) | US$ in thousands | 2,884,667 | 3,861,000 | 3,797,000 | 3,830,000 | 3,927,000 | 4,069,000 | 4,231,000 | 4,494,000 | 4,796,000 | 5,003,000 | 5,063,000 | 4,936,000 | 4,689,000 |
| Pretax margin | -9.40% | -6.92% | -0.74% | -0.37% | 0.10% | -0.15% | 0.28% | 1.45% | 2.48% | 3.60% | 4.01% | 3.89% | 4.07% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-271,033K ÷ $2,884,667K
= -9.40%
The pretax margin of RXO Inc. has shown a decreasing trend over the analyzed period. It started at 4.07% in December 31, 2021, and gradually declined to -9.40% by December 31, 2024. This indicates that the company's profitability before taxes has been eroding, reaching negative levels in the latter part of the period. A declining pretax margin can be a cause for concern as it may signify challenges in generating profits relative to the revenue earned. RXO Inc. should carefully assess its cost structures and revenue streams to address this trend and improve its financial performance.
Peer comparison
Dec 31, 2024