RXO Inc. (RXO)

Return on assets (ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Net income (ttm)	US$ in thousands	4,000	-2,000	12,000
Total assets	US$ in thousands	1,825,000	1,946,000	1,912,000	2,018,000	2,031,000	2,237,000
ROA		0.22%	-0.10%	0.63%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $4,000K ÷ $1,825,000K
= 0.22%

Return on assets (ROA) is a key financial ratio that reflects a company's ability to generate profits from its assets. Looking at the trend in ROA for RXO Inc. over the past few quarters, we observe fluctuations in the company's efficiency in utilizing its assets to generate earnings.

In the most recent quarter, as of December 31, 2023, RXO Inc. reported an ROA of 0.22%, indicating that the company generated a profit of 0.22 cents for every dollar of assets it holds. This suggests a modest return on its asset base.

In the previous quarter, as of September 30, 2023, ROA was negative at -0.10%, meaning the company incurred losses relative to its assets. This negative ROA may raise concerns about the company's ability to generate profits or manage its assets efficiently.

However, the quarter before that, as of June 30, 2023, RXO Inc. showed a relatively strong ROA of 0.63%, signifying enhanced profitability from its asset base compared to the recent quarters.

Overall, the fluctuation in ROA for RXO Inc. implies varying levels of efficiency in generating profits from its assets. It is essential for the company to sustain or improve its ROA over time to demonstrate effective asset management and profitability. Additional analysis of the company's financial performance and asset utilization may provide insights into the factors driving these fluctuations in ROA.