Company: QXO-PB
Filing Date: 2025-04-18
Form Type: 424B5
Source: 0001140361-25-014566
Chunk: 59

Company: QXO, Inc.
Filing Date: 2025-04-18
Form: 424B5
Chunk 59
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 in the winter months and its past due accounts receivable balance as a percentage of total receivables generally increases during this time. Throughout the year, Beacon closely monitors its receivables and record estimated reserves based upon its judgment of specific customer situations, aging of accounts, the historical write-offs of uncollectible accounts, and expected future circumstances that may impact collectability. Beacon’s divisional credit teams are staffed to manage and monitor its receivable aging balances and are led by a Chief Credit Officer, a seasoned executive with expertise in underwriting, loss mitigation, and collections. Its systems allow us to enforce predetermined credit approval levels and properly leverage new business. Specifically, the credit preapproval process denotes the maximum credit that each level of management can approve, with the highest credit amount requiring approval by the Chief Executive Officer and Chief Financial Officer. There are daily communications with branch and field staff and the divisional credit teams conduct periodic reviews with their branch managers, various regional management staff, and the Chief Credit Officer. Depending on the state of the respective division’s receivables, these reviews can be weekly, biweekly, or monthly. Additionally, the divisional credit teams are required to submit a monthly receivable forecast to the Chief Credit Officer. On a monthly basis, the Chief Credit Officer reviews and discusses these forecasts, as well as a prior month recap, with members of the executive management team. Periodically, Beacon performs a specific analysis of all accounts past due and write off account balances when it has exhausted reasonable collection efforts and determined that the likelihood of collection is remote based upon the following factors:

| • | aging statistics and trends; |

| • | customer payment history; |

| • | review of the customer’s financial statements when available; |

| • | independent credit reports; and |

| • | discussions with customers. |

S-38

#### TABLE OF CONTENTS
**Beacon still pursues collection of amounts written off in certain circumstances and credit the allowance for any subsequent recoveries. Over the past three fiscal years, bad debt expense has been, on average, 0.12% of net sales. The continued limitation of bad debt expense is primarily attributable to the strengthening of the collections process and the overall credit environment.

Quantitative and Qualitative Disclosures about Market Risk

Beacon is exposed to certain market risks as part of its on-going business operations, including foreign currency exchange rate risk and commodity price risk.

Foreign Currency Exchange Rate Risk

Beacon has exposure to foreign currency exchange rate fluctuations for net sales generated by its operations