RXO Inc. (RXO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 19.89% | 20.90% | 23.18% | 23.68% | 22.43% | 22.71% | 22.95% | 23.43% | 24.44% | 23.39% | 22.30% | 21.19% | 21.07% |
| Operating profit margin | -1.63% | -0.23% | 0.45% | 0.57% | 0.99% | 0.69% | 1.16% | 2.07% | 2.90% | 3.82% | 3.99% | 3.87% | 4.12% |
| 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% |
| Net profit margin | -9.19% | -6.81% | -0.55% | -0.29% | 0.10% | -0.05% | 0.28% | 1.18% | 1.92% | 2.76% | 3.12% | 3.02% | 3.20% |
The profitability ratios of RXO Inc. have shown fluctuations over the years based on the provided data.
- The Gross Profit Margin, which measures the proportion of revenue that exceeds the cost of goods sold, has generally shown a declining trend from December 31, 2021, to December 31, 2024. This indicates that the company's ability to generate profit from its core business activities has weakened over time.
- The Operating Profit Margin, reflecting the company's ability to control operating expenses relative to its revenue, has experienced a decreasing trend as well, with the margin moving from positive in 2021 to negative by December 31, 2024. This suggests that the company's operational efficiency and cost management have deteriorated significantly.
- The Pretax Margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, also depicts a declining trend, indicating challenges in generating profits before accounting for taxes and other expenses from 2021 to 2024.
- The Net Profit Margin, which reveals the company's overall profitability after all expenses have been deducted, shows a consistent decline over the years, with the company's ability to generate bottom-line profits diminishing significantly by December 31, 2024.
Overall, the profitability ratios suggest that RXO Inc. has been facing challenges in maintaining and growing its profits, as evidenced by the downward trends in the margins over the analyzed period. Further investigation into the company's cost structures, revenue streams, and efficiency in operations may be necessary to address these profitability concerns.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2,262.88% | -0.27% | 0.94% | 1.22% | 2.14% | 1.44% | 2.56% | 4.61% | 6.82% | 8.54% | 8.52% | 8.32% | 9.33% |
| Return on assets (ROA) | -12,759.75% | -7.75% | -1.16% | -0.61% | 0.22% | -0.10% | 0.63% | 2.63% | 4.51% | 6.17% | 6.66% | 6.49% | 7.25% |
| Return on total capital | -1,808.04% | 469.98% | 3.28% | 4.98% | 7.91% | 5.76% | 11.38% | 21.71% | 29.88% | 20.37% | 19.10% | 18.89% | 18.32% |
| Return on equity (ROE) | -16,389.61% | -15,920.10% | -3.63% | -1.89% | 0.68% | -0.33% | 2.04% | 9.07% | 15.62% | 12.06% | 13.18% | 14.29% | 14.02% |
Based on the provided data for RXO Inc., the profitability ratios show a declining trend over the analyzed period.
1. Operating Return on Assets (Operating ROA): The Operating ROA decreased from 9.33% in December 2021 to -2,262.88% in December 2024. This substantial decline indicates that the operating profit generated from the company's assets significantly decreased and turned negative by the end of the period.
2. Return on Assets (ROA): The ROA also experienced a decline from 7.25% in December 2021 to -12,759.75% in December 2024. This suggests that the company's overall profitability in relation to its total assets deteriorated significantly, resulting in negative returns on assets at the end of the analysis period.
3. Return on Total Capital: The Return on Total Capital showed a fluctuating trend, with a substantial increase in March 2024 to 469.98% followed by a significant decline to -1,808.04% in December 2024. This indicates that the company faced challenges in efficiently utilizing its total capital to generate returns, resulting in negative returns by the end of the period.
4. Return on Equity (ROE): The ROE also demonstrated a downward trajectory, with a decrease from 14.02% in December 2021 to -16,389.61% in December 2024. This indicates that the company's ability to generate profits in relation to shareholders' equity deteriorated significantly, resulting in negative returns on equity at the end of the analyzed period.
Overall, the declining trend in all profitability ratios signals potential financial challenges and inefficiencies in the management of assets, capital, and equity within RXO Inc. It is crucial for the company to address these issues and implement strategic measures to improve profitability and financial performance moving forward.