RXO Inc. (RXO)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | -29,236 | 7,764 | 19,000 | 29,000 | 47,000 | 34,000 | 67,000 | 127,000 | 176,000 | 233,000 | 229,000 | 197,000 | 196,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,617 | 1,652 | 579,000 | 582,000 | 594,000 | 590,000 | 589,000 | 585,000 | 589,000 | 1,144,000 | 1,199,000 | 1,043,000 | 1,070,000 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-29,236K ÷ ($—K + $1,617K)
= -1,808.04%
Return on total capital is a key financial ratio that indicates how effectively a company utilizes its capital to generate profits.
Analyzing the trend in RXO Inc.'s return on total capital over the specified periods reveals fluctuations in the company's efficiency in generating returns for its capital providers.
- The ratio increased steadily from December 31, 2021 to September 30, 2022, indicating an improving ability to generate returns on the total capital employed.
- However, there was a significant spike in the ratio as of December 31, 2022, suggesting a rapid increase in profitability compared to the capital invested.
- Subsequently, there was a notable decline in the ratio, reaching its lowest point at June 30, 2024, indicating a decrease in the company's ability to generate returns on its total capital.
- The ratio then exhibited a substantial increase at September 30, 2024, followed by a significant negative return at December 31, 2024, which could be a result of unusual financial events or anomalies.
Overall, the fluctuations in RXO Inc.'s return on total capital highlight the company's changing efficiency in generating profits relative to the overall capital invested during the specified periods. Further analysis of the underlying financial performance and capital structure changes may be necessary to understand the reasons behind these fluctuations.
Peer comparison
Dec 31, 2024