RXO Profit Margin vs. Total Debt
| RXO Stock | USD 30.42 2.06 7.26% |
RXO Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.24 | 0.1676 |
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| Net Profit Margin | 0.001 | 0.001 |
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| Operating Profit Margin | 0.0182 | 0.0099 |
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| Pretax Profit Margin | 0.001 | 0.001 |
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| Return On Assets | 0.0021 | 0.0022 |
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| Return On Equity | 0.0064 | 0.0067 |
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For RXO profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RXO to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RXO Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RXO's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RXO Inc over time as well as its relative position and ranking within its peers.
RXO |
RXO's Revenue Breakdown by Earning Segment
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Is Cargo Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of RXO. If investors know RXO will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about RXO listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.93) | Earnings Share (2.14) | Revenue Per Share 31.776 | Quarterly Revenue Growth 0.066 | Return On Assets 0.0091 |
The market value of RXO Inc is measured differently than its book value, which is the value of RXO that is recorded on the company's balance sheet. Investors also form their own opinion of RXO's value that differs from its market value or its book value, called intrinsic value, which is RXO's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because RXO's market value can be influenced by many factors that don't directly affect RXO's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between RXO's value and its price as these two are different measures arrived at by different means. Investors typically determine if RXO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RXO's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
RXO Inc Total Debt vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining RXO's current stock value. Our valuation model uses many indicators to compare RXO value to that of its competitors to determine the firm's financial worth. RXO Inc is rated below average in profit margin category among its peers. It is rated second in total debt category among its peers . At this time, RXO's Net Profit Margin is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the RXO's earnings, one of the primary drivers of an investment's value.RXO Total Debt vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
RXO |
| = | (0.07) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
RXO |
| = | 558 M |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
RXO Total Debt vs Competition
RXO Inc is rated second in total debt category among its peers. Total debt of Industrials industry is at this time estimated at about 4.96 Billion. RXO retains roughly 558 Million in total debt claiming about 11% of equities under Industrials industry.
RXO Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in RXO, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RXO will eventually generate negative long term returns. The profitability progress is the general direction of RXO's change in net profit over the period of time. It can combine multiple indicators of RXO, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3 M | -3.1 M | |
| Operating Income | 39 M | 37 M | |
| Net Income From Continuing Ops | 4 M | 3.8 M | |
| Income Before Tax | 4 M | 3.8 M | |
| Total Other Income Expense Net | -35 M | -33.2 M | |
| Net Income Applicable To Common Shares | 105.8 M | 95.4 M | |
| Net Income | 4 M | 3.8 M | |
| Income Tax Expense | 29 M | 29.3 M | |
| Net Interest Income | -32 M | -30.4 M | |
| Interest Income | 3.6 M | 3.2 M | |
| Change To Netincome | 16.2 M | 15.8 M | |
| Net Income Per Share | 0.03 | 0.03 | |
| Income Quality | 22.25 | 23.36 | |
| Net Income Per E B T | 0.70 | 0.61 |
RXO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on RXO. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of RXO position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the RXO's important profitability drivers and their relationship over time.
Use RXO in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if RXO position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RXO will appreciate offsetting losses from the drop in the long position's value.RXO Pair Trading
RXO Inc Pair Trading Analysis
The ability to find closely correlated positions to RXO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RXO when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back RXO - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling RXO Inc to buy it.
The correlation of RXO is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as RXO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RXO Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for RXO can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your RXO position
In addition to having RXO in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Equity Center. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project RXO's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of RXO Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include RXO's income statement, its balance sheet, and the statement of cash flows.