RXO Inc. (RXO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -285 | 4,000 | 92,000 | 150,000 | 43,000 |
| Total assets | US$ in thousands | 3,414,000 | 1,825,000 | 2,038,000 | 2,068,000 | 1,870,000 |
| ROA | -0.01% | 0.22% | 4.51% | 7.25% | 2.30% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-285K ÷ $3,414,000K
= -0.01%
Based on the data provided, the return on assets (ROA) of RXO Inc. has displayed fluctuations over the past five years. The ROA was 2.30% as of December 31, 2020, showing a moderate return on the company's assets. Subsequently, there was a significant increase to 7.25% by December 31, 2021, indicating improved asset efficiency and profitability.
However, in the following year, the ROA declined to 4.51% by December 31, 2022. This reduction suggests a potential decrease in either asset utilization or overall profitability. The trend worsened in the subsequent year, where the ROA dropped to 0.22% by December 31, 2023, indicating a concerning decline in the company's ability to generate profit from its assets.
By December 31, 2024, the ROA turned negative at -0.01%, implying that the company's assets were not generating sufficient returns to cover its expenses, resulting in a net loss when asset efficiency is considered. This negative trend highlights potential financial challenges or inefficiencies within RXO Inc., which may require further investigation and strategic adjustments to improve the company's overall financial performance.
Peer comparison
Dec 31, 2024