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RXO (RXO) Debt-to-EBITDA : 47.58 (As of Mar. 2024)


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What is RXO Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

RXO's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $70 Mil. RXO's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $501 Mil. RXO's annualized EBITDA for the quarter that ended in Mar. 2024 was $12 Mil. RXO's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 47.58.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for RXO's Debt-to-EBITDA or its related term are showing as below:

RXO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.5   Med: 1.91   Max: 8.92
Current: 8.92

During the past 5 years, the highest Debt-to-EBITDA Ratio of RXO was 8.92. The lowest was 0.50. And the median was 1.91.

RXO's Debt-to-EBITDA is ranked worse than
88.67% of 847 companies
in the Transportation industry
Industry Median: 2.81 vs RXO: 8.92

RXO Debt-to-EBITDA Historical Data

The historical data trend for RXO's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RXO Debt-to-EBITDA Chart

RXO Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
- 0.87 0.50 2.95 5.42

RXO Quarterly Data
Dec19 Dec20 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.63 4.85 5.82 69.75 47.58

Competitive Comparison of RXO's Debt-to-EBITDA

For the Trucking subindustry, RXO's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


RXO's Debt-to-EBITDA Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, RXO's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where RXO's Debt-to-EBITDA falls into.



RXO Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

RXO's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(56 + 502) / 103
=5.42

RXO's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(70 + 501) / 12
=47.58

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2024) EBITDA data.


RXO  (NYSE:RXO) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


RXO Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of RXO's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


RXO (RXO) Business Description

Traded in Other Exchanges
Address
11215 North Community House Road, Charlotte, NC, USA, 28277
RXO Inc is a brokered transportation platform defined by cutting-edge technology and a nimble, asset-light business model, with the largest component being core truck brokerage business. The company operates into one reportable segment. The operating segment operate within the transportation industry and in primarily the same geography North America.
Executives
Mfn Partners, Lp 10 percent owner 222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
Christine S Breves director 600 GRANT STREET, SUITE 6100, PITTSBURGH PA 16059
Andrew M. Wilkerson officer: Chief Executive Officer 11215 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Stephen M. Renna director 11215 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Thomas A Szlosek director HONEYWELL INTERNATIONAL INC., 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Mfn Partners Gp, Llc 10 percent owner 222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
Michelle Nettles director MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Mary E. Kissel director C/O RXO, INC., 11215 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Mfn Partners Management, Llc 10 percent owner 222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
Jason S. Kerr officer: Chief Accounting Officer 11215 N. COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Michael Demichele 10 percent owner 222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
S Jacobs Bradley director C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Mfn Partners Management, Lp 10 percent owner 222 BERKELEY STREET, 13TH FLOOR, BOSTON MA 02116
Annamaria Desalva director C/O RXO, INC., 11215 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Adrian Kingshott director C/O RXO, INC., 11215 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277