Xerox Corp (XRX)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.20 | 8.28 | 8.46 | 3.92 | 3.70 | |
| DSO | days | 44.53 | 44.10 | 43.14 | 93.05 | 98.74 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.20
= 44.53
The days of sales outstanding (DSO) metric for Xerox Corp has shown a positive trend over the past few years. In December 31, 2020, the DSO stood at 98.74 days, indicating that on average it took the company around 98.74 days to collect payments from customers.
By December 31, 2021, the DSO improved to 93.05 days, suggesting a more efficient collection of accounts receivable. This trend continued into December 31, 2022, where the DSO significantly dropped to 43.14 days, reflecting a notable enhancement in the company's cash conversion cycle.
In the following years, the DSO remained relatively stable, with slight increases in December 31, 2023 (44.10 days) and December 31, 2024 (44.53 days). Overall, the decreasing trend in DSO up to 2022 indicates that Xerox Corp has been successful in managing its accounts receivable effectively and efficiently improving its cash flow management. However, the recent stability in the DSO might require further monitoring to ensure continued efficiency in the collection process.
Peer comparison
Dec 31, 2024