RXO Inc. (RXO)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 3,414,000 | 1,825,000 | 2,038,000 | 2,068,000 | 1,870,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,414,000K
= 0.00
The debt-to-assets ratio for RXO Inc. remained constant at 0.00 from December 31, 2020, through December 31, 2024. This indicates that the company has not used any debt financing to fund its operations during this period. A debt-to-assets ratio of 0.00 typically signifies that the company is not reliant on external debt to support its asset base, which can be viewed positively as it implies lower financial risk and potential interest expense. However, it is essential to consider that a very low debt-to-assets ratio may also indicate missed opportunities for leveraging debt for potential growth or tax advantages. Overall, RXO Inc.'s consistent 0.00 debt-to-assets ratio suggests a conservative capital structure strategy.
Peer comparison
Dec 31, 2024