RXO Operating Income vs Cost Of Revenue Analysis
| RXO Stock | USD 28.36 0.26 0.91% |
RXO financial indicator trend analysis is much more than just breaking down RXO Inc prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether RXO Inc is a good investment. Please check the relationship between RXO Operating Income and its Cost Of Revenue accounts. Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in RXO Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest.
Operating Income vs Cost Of Revenue
Operating Income vs Cost Of Revenue Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of RXO Inc Operating Income account and Cost Of Revenue. At this time, the significance of the direction appears to have weak relationship.
The correlation between RXO's Operating Income and Cost Of Revenue is 0.36. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Cost Of Revenue in the same time period over historical financial statements of RXO Inc, assuming nothing else is changed. The correlation between historical values of RXO's Operating Income and Cost Of Revenue is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of RXO Inc are associated (or correlated) with its Cost Of Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Cost Of Revenue has no effect on the direction of Operating Income i.e., RXO's Operating Income and Cost Of Revenue go up and down completely randomly.
Correlation Coefficient | 0.36 |
| Relationship Direction | Positive |
| Relationship Strength | Very Weak |
Operating Income
Operating Income is the amount of profit realized from RXO Inc operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of RXO Inc is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Cost Of Revenue
Cost of Revenue is found on RXO Inc income statement and represents the costs associated with goods and services RXO provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities.Most indicators from RXO's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into RXO Inc current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in RXO Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. At this time, RXO's Selling General Administrative is very stable compared to the past year. As of the 11th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.02, while Tax Provision is likely to drop 0.00.
| 2021 | 2022 | 2023 | 2024 (projected) | Interest Expense | 5M | 4M | 32M | 17.6M | Depreciation And Amortization | 81M | 86M | 67M | 64.3M |
RXO fundamental ratios Correlations
Click cells to compare fundamentals
RXO Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Pair Trading with RXO
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.Moving against RXO Stock
| 0.66 | FLYX | flyExclusive, | PairCorr |
| 0.61 | BEST | BEST Inc | PairCorr |
| 0.43 | MESA | Mesa Air Group Earnings Call Tomorrow | PairCorr |
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.Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in RXO Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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.