Name: Return on Assets (ROA)

Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.

Interpretation:
• In '2021', RXO's return on assets was 7.2%, representing returns generated from total assets. Industry average for Transportation Services in '2021' stood at -49.2%.
• In '2022', RXO's return on assets was 4.5%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Transportation Services in '2022' stood at -40.7%. Industry average increased by 8.5% compared to previous year.
• In '2023', RXO's return on assets was 0.2%, representing returns generated from total assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Transportation Services in '2023' stood at -31.3%. Industry average increased by 9.4% compared to previous year.
• In '2024', RXO's return on assets was -11.1%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Transportation Services in '2024' stood at -12.6%. Industry average increased by 18.6% compared to previous year.
Overall, RXO's return on assets has been volatile but showed a downward trend over the past 4 years.

Formula: ROA = Net Income / Total Assets

Good Range: Commonly 5%-15%.