Xerox Corp (XRX)

Short-term

Turnover ratios

Xerox Corp's activity ratios indicate the efficiency of its operational activities over the years.

1. Inventory Turnover:
- Xerox's inventory turnover ratio has shown fluctuations over the years, ranging from 2.55 to 3.11. This ratio measures how many times the company sells and replaces its inventory during a specific period. An increasing trend in inventory turnover is generally positive as it indicates that the company is managing its inventory more efficiently.

2. Receivables Turnover:
- The receivables turnover ratio for Xerox has been consistently high, ranging from 3.70 to 8.46. This ratio reveals how many times a company collects its accounts receivable during a specific period. A high receivables turnover suggests that Xerox has been successful in converting credit sales into cash quickly.

3. Payables Turnover:
- Xerox's payables turnover ratio has shown a slight fluctuation, ranging from 1.53 to 2.27. This ratio assesses how efficiently a company manages its payments to suppliers. A decreasing trend in payables turnover may indicate that Xerox is taking longer to pay its creditors, which could affect its supplier relationships.

4. Working Capital Turnover:
- Xerox's working capital turnover has significantly increased from 2.20 to 20.65 over the years. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio suggests that Xerox is efficiently converting its working capital into sales.

Overall, the analysis of Xerox Corp's activity ratios highlights its effectiveness in managing inventory, collecting receivables promptly, and utilizing working capital efficiently. However, the slight fluctuation in payables turnover warrants attention to ensure effective management of supplier payments.

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Average number of days

The analysis of Xerox Corp's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH): Xerox has seen fluctuating levels of inventory turnover efficiency over the years. The days of inventory on hand decreased from 137.79 days in 2020 to 117.46 days in 2023, indicating a positive trend in inventory management. However, there was a slight increase to 133.65 days in 2024, which may suggest a slowdown in inventory turnover efficiency.

2. Days of Sales Outstanding (DSO): Xerox has displayed a positive trend in collecting receivables efficiently. The days of sales outstanding decreased significantly from 98.74 days in 2020 to 43.14 days in 2022, pointing towards improved collection processes and faster conversion of accounts receivable into cash. The DSO remained relatively stable in 2023 and 2024 around 44 days, indicating consistent performance in this aspect.

3. Number of Days of Payables: Xerox has experienced varying levels of payment obligations efficiency. The number of days of payables increased from 160.68 days in 2020 to 239.32 days in 2022, suggesting a longer time taken to settle payables, which may indicate a strain on cash flows. There was a slight decline in 2023 to 185.52 days and a slight increase to 196.73 days in 2024, indicating some improvement but remaining at a higher level compared to the initial period.

Overall, Xerox Corp's activity ratios reflect a mix of positive and negative trends in managing inventory, receivables, and payables efficiently over the years, highlighting the company's efforts to enhance operational performance and liquidity management.

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Long-term

Xerox Corp's fixed asset turnover ratio has shown a consistent upward trend over the past five years, increasing from 24.54 in December 2020 to 26.63 in December 2024. This indicates that the company has been able to generate more revenue per dollar of fixed assets invested in the business.

In terms of total asset turnover, Xerox Corp has also demonstrated improvement, with the ratio rising from 0.49 in December 2020 to 0.78 in December 2024. This suggests that the company has been more efficient in utilizing its total assets to generate sales.

Overall, Xerox Corp's long-term activity ratios reflect a positive trend, showing increased efficiency in managing both fixed and total assets to drive revenue generation and business operations.