RXO Inc. (RXO)
Debt-to-assets ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — |
| Total assets | US$ in thousands | 1,825,000 | 1,946,000 | 1,912,000 | 2,018,000 | 2,031,000 | 2,237,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,825,000K
= 0.00
Based on the data provided for RXO Inc., the debt-to-assets ratio has consistently remained at 0.00 over the last few quarters. This indicates that the company has not utilized any debt to finance its assets during these periods. A debt-to-assets ratio of 0.00 typically suggests that the company's assets are entirely funded by equity or other non-debt sources.
While a low debt-to-assets ratio can imply strong financial stability and lower financial risk due to lower debt obligations and interest expenses, it may also suggest limited leverage and potential missed opportunities for growth through strategic debt utilization.
It is essential to understand the rationale behind the consistently low debt-to-assets ratio and consider the company's overall financial goals and strategies to determine whether this is a deliberate choice or a result of circumstances. Further analysis of RXO Inc.'s financial statements and business operations would provide more insights into the company's capital structure and financial health.
Peer comparison
Dec 31, 2023