RXO Inc. (RXO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 594,000 | 590,000 | 589,000 | 585,000 | 587,000 | 1,144,000 |
| ROE | 0.67% | -0.34% | 2.04% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,000K ÷ $594,000K
= 0.67%
To analyze RXO Inc.'s return on equity (ROE) based on the provided data, we observe a fluctuating trend over the past six quarters.
In the December 2022 quarter, the ROE was reported at 0.67%, indicating a positive return generated on the shareholders' equity. However, this positive trend did not continue into the next quarter as the ROE turned negative, showing a result of -0.34% in September 2023.
Following the negative ROE in September 2023, there was an improvement in the June 2023 quarter, with the ROE increasing to 2.04%. This improvement suggests that the company may have effectively utilized its equity to generate profit during that period.
Overall, the company's ROE has been fluctuating, indicating inconsistency in generating returns on the shareholders' equity. It is essential for RXO Inc. to closely monitor and potentially optimize its financial management strategies to deliver more consistent and favorable ROE figures in the future.
Peer comparison
Dec 31, 2023