DXC Technology Co (DXC)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Inventory turnover — 26.87 27.11 23.51 27.40 11.17 21.41 21.74 23.19 28.70 33.24 28.34 26.66 38.38 31.53 38.38 39.63 27.86 21.68 11.38
Receivables turnover 4.20 4.43 4.46 4.31 4.19 4.30 4.43 4.29 4.22 4.53 4.41 4.26 4.27 4.40 4.50 4.49 4.46 4.34 4.38 3.89
Payables turnover 15.62 17.14 24.52 21.86 19.97 16.12 16.54 18.49 18.00 22.69 24.52 21.79 21.21 26.40 17.09 16.82 16.02 11.67 9.08 5.46
Working capital turnover 18.44 24.34 22.46 20.62 15.40 18.04 18.91 26.79 27.43 21.47 29.81 128.65 305.67 21.75 — 8.05 17.93 — — —

The inventory turnover ratio for DXC Technology Co has shown fluctuation over the period under review, ranging from a low of 11.17 to a high of 38.38. The company's receivables turnover ratio has remained relatively stable, hovering around 4.20 to 4.53. On the other hand, the payables turnover ratio has exhibited variability, with values ranging from 5.46 to 26.40.

The working capital turnover ratio has shown significant fluctuations, with values ranging from 8.05 to 305.67. This suggests that DXC Technology Co has been able to efficiently utilize its working capital at times but may also have experienced challenges in managing it effectively during certain periods. Overall, the analysis of activity ratios indicates varying levels of efficiency in managing inventory, receivables, payables, and working capital over the period reviewed.

Average number of days

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Days of inventory on hand (DOH) days — 13.59 13.46 15.53 13.32 32.68 17.05 16.79 15.74 12.72 10.98 12.88 13.69 9.51 11.58 9.51 9.21 13.10 16.83 32.09
Days of sales outstanding (DSO) days 86.88 82.41 81.79 84.62 87.04 84.91 82.33 85.15 86.49 80.49 82.81 85.76 85.56 83.01 81.03 81.24 81.89 84.12 83.32 93.83
Number of days of payables days 23.36 21.30 14.89 16.69 18.28 22.64 22.07 19.74 20.28 16.09 14.89 16.75 17.21 13.83 21.36 21.70 22.78 31.29 40.21 66.86

Days of inventory on hand (DOH) of DXC Technology Co decreased from 32.68 days in March 2020 to 13.46 days in December 2023, indicating a significant improvement in managing inventory levels efficiently over the period.

Days of sales outstanding (DSO) remained relatively stable, ranging between 80 to 90 days throughout the analyzed period, suggesting that the company generally maintains consistent collection practices for its sales.

The number of days of payables varied, with a notable reduction from 66.86 days in June 2019 to 21.30 days in December 2023. This trend indicates that DXC Technology Co has been more efficient in paying its suppliers over time.

Overall, these activity ratios suggest that the company has effectively managed its inventory, maintained consistent sales collection practices, and improved its payment terms with suppliers, which are positive indicators of its operational efficiency and liquidity management.

Long-term

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Fixed asset turnover 9.71 9.32 9.47 9.13 9.28 9.38 9.82 9.43 8.99 9.03 8.61 8.66 8.39 7.73 8.15 8.11 8.41 3.92 5.68 5.61
Total asset turnover 0.99 0.93 0.95 0.93 0.91 0.81 0.87 0.85 0.81 0.83 0.84 0.83 0.80 0.77 0.74 0.69 0.75 0.68 0.68 0.63

The fixed asset turnover ratio for DXC Technology Co has been relatively stable over the past few quarters, averaging around 9. This indicates that the company generates approximately 9 times in sales for every dollar invested in fixed assets, such as property, plant, and equipment. A consistent high fixed asset turnover ratio suggests efficient utilization of fixed assets to generate revenue.

In comparison, the total asset turnover ratio has shown some fluctuation but generally remains below 1, indicating that the company generates less than $1 in sales for every dollar of total assets. This can be an indication of the fact that the company's level of assets may not be effectively utilized to generate revenue. It is important for the company to focus on improving this ratio to ensure optimal utilization of its total assets.

Overall, the company's fixed asset turnover suggests efficient use of fixed assets to generate revenue, while the total asset turnover indicates some room for improvement in optimizing the utilization of all assets to generate sales.