RXO Inc. (RXO)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 594,000 | 590,000 | 589,000 | 585,000 | 587,000 | 1,144,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $594,000K
= 0.00
Based on the data provided, RXO Inc. has consistently maintained a debt-to-equity ratio of 0.00 throughout the last six quarters, indicating that the company has not utilized any debt to finance its operations. A debt-to-equity ratio of 0.00 means that the company has no debt on its balance sheet in relation to its equity.
This could imply that RXO Inc. relies solely on equity financing for its operations, which can be seen as a positive sign by investors and creditors as it reflects a lower financial risk compared to companies with higher levels of debt. However, it is important to note that having a very low or zero debt-to-equity ratio may also mean that the company is not taking advantage of leverage to potentially enhance returns.
Overall, the stable and consistently low debt-to-equity ratio of RXO Inc. suggests a conservative financial approach with minimal debt exposure, which may appeal to risk-averse investors.
Peer comparison
Dec 31, 2023