DXC Technology Co (DXC)

Short-term

Turnover ratios

The activity ratios of DXC Technology Co provide insights into how efficiently the company is managing its resources.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells its inventory during a period. DXC Technology Co has maintained a consistent inventory turnover ratio over the years, indicating efficient management of inventory. The ratio increased from 19.38 in 2021 to 19.73 in 2023 before data became unavailable for 2024 and 2025.

2. Receivables Turnover:
- The receivables turnover ratio shows how effectively a company is collecting its outstanding receivables. DXC Technology Co's receivables turnover ratio has been relatively stable, varying slightly between 4.19 and 4.33 over the years. This indicates that the company is efficient in collecting payments from its customers.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. DXC Technology Co's payables turnover ratio declined from 15.41 in 2021 to 12.50 in 2024 before increasing to 17.80 in 2025. A decrease in this ratio may suggest the company is taking longer to pay its suppliers, while an increase may indicate more prompt payments.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales revenue. DXC Technology Co's working capital turnover ratio has decreased significantly from 305.67 in 2021 to 13.52 in 2025. This sharp decline may indicate a potential inefficiency in utilizing working capital to support sales activities.

Overall, analyzing these activity ratios provides valuable insights into the operational efficiency and management of resources within DXC Technology Co over the years.

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Average number of days

The activity ratios for DXC Technology Co provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): The company held inventory for an average of around 18 to 19 days over the past few years. A lower DOH value indicates faster inventory turnover, which is generally favorable as it suggests efficient management of inventory levels.

2. Days of Sales Outstanding (DSO): DXC Technology Co took an average of around 85 to 87 days to collect receivables from customers. A lower DSO value would indicate quicker collections, improving cash flow and reducing the risk of bad debts.

3. Number of Days of Payables: The company took an average of around 23 to 29 days to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to pay its bills, which can sometimes be a strategic move to preserve cash or manage working capital effectively.

Overall, these activity ratios suggest that DXC Technology Co has been able to maintain a balance between managing its inventory efficiently, collecting receivables in a timely manner, and handling payables effectively over the years.

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Long-term

The analysis of DXC Technology Co's long-term activity ratios provides insights into the efficiency of the company in utilizing its assets to generate sales.

1. Fixed Asset Turnover: This ratio indicates how efficiently the company is using its fixed assets to generate revenue. DXC Technology Co's fixed asset turnover has shown a positive trend over the years, increasing from 4.11 in March 2021 to 5.00 in March 2023. This suggests that the company has been able to generate more sales relative to its investment in fixed assets. The lack of data for 2024 and 2025 prevents a comprehensive comparison for those years.

2. Total Asset Turnover: The total asset turnover ratio measures how effectively the company utilizes all its assets to generate sales. DXC Technology Co's total asset turnover has shown a fluctuating trend over the years, with a slight increase from 0.80 in March 2021 to 0.81 in March 2022, followed by a more significant increase to 0.91 in March 2023. However, the ratio slightly decreased to 0.99 in March 2024 and then dropped to 0.97 in March 2025. Overall, the company seems to be effectively utilizing its assets to generate sales, although with some fluctuations in recent years.

In conclusion, the analysis of DXC Technology Co's long-term activity ratios reveals an improving trend in fixed asset turnover and mixed performance in total asset turnover over the years. Efficient utilization of assets, as indicated by these ratios, is essential for the company's overall financial performance and sustainability.